Mortgages; Assignments of Rents and Leases Sample Clauses
The "Mortgages; Assignments of Rents and Leases" clause establishes the lender's rights to secure its interest in a property by not only holding a mortgage but also by obtaining an assignment of any income generated from the property, such as rents or lease payments. In practice, this means that if the borrower defaults on the loan, the lender can collect rents directly from tenants or take over lease agreements to recover the outstanding debt. This clause is essential for protecting the lender's investment by providing additional sources of repayment and ensuring that the property's income stream can be used to satisfy the borrower's obligations in the event of default.
Mortgages; Assignments of Rents and Leases. Borrower shall have executed and delivered to Lender the Mortgages and the Assignments of Rents and Leases with respect to the Mortgaged Property and such Mortgages and Assignments of Rents and Leases shall have been filed of record in the appropriate filing office in the jurisdiction in which the Mortgaged Property is located or irrevocably delivered to a title agent for such recordation.