Bsb113 Assignment Of Rents

Great subject for new perspectives on government and business decisions. Lecturer and tutors I engaged with were enthusiastic and knowledgable. One star less due to lecturer responses being delayed an impersonal.

Anonymous, Semester 2, 2017

As someone who has done economics for years and hated it - this subject is great and really interesting! Assessment is straight forward and the teaching staff are very upfront with what they want/ expect.

Anonymous, Semester 1, 2017

My favourite subject in first year. Thought it would be heavy on maths but division and multiplication is all you need to know. I could see the relevance of microeconomics in my own life. For macroeconomics deputy head of economic analysis department Merylin Coombs from the RBA presented a lecture on monetary policy which was extra special. For the exam, the questions are the same as in the practice exam, tutorial questions and questions on MyEconLab. I had already seen all of the questions on the exam before I saw the exam, just re-worded

Anonymous, Semester 1, 2017

I was skeptical about this subject because most people described economics as boring. I admit some of the initial concepts were a bit "dry" but once I got past this, I found it enjoyable and interesting. There was so much online resources, textbook questions and the tutorials were recorded so you could view the answers to the questions as many times as needed. There was a lot of material given for the assignment so research time was cut down and there was information to answer any possible question about the assignment. The way the exam was structured made it very passable. I would advise anyone taking this unit to just follow what the lecturers and tutors tell you to do and you would pass.

Anonymous, Semester 2, 2016

Want to know how things function in real life? Price? Quantity? This is the subject to go for.

Anonymous, Semester 1, 2016

Q: What is the difference between a general assignment of rents and leases and a specific assignment of rents and leases, and when should I include them in my term sheet for a commercial real estate financing of an Ontario property?

A: In situations where a borrower owns real property in Ontario that either is or will be leased to third party tenants, a lender should consider obtaining either a general assignment of rents and leases or a specific assignment of rents and leases in addition to a mortgage on the secured property. Like a mortgage, an assignment of rents and leases should be registered against title to the subject property, and in addition, should be registered under the applicable personal property security legislation as the rents and leases that are being secured by the assignment fall within the definition of personal property under that legislation. [1]

An assignment of rents and leases, be it a general assignment of rents and leases or a specific assignment of rents and leases, provides a lender with two principal benefits which may be realized by the lender after an event of default:

  1. it permits the lender to receive the rent payments that the borrower/landlord would otherwise be entitled to, and this revenue stream from the tenants is a significant asset that should be secured; and,
  2. it permits the lender to step into the shoes of the borrower/landlord and exercise all of the rights and remedies available to the landlord to ensure that the full benefit and value of the lease is realized by the lender, which includes for example, the right to demand payment in the event of non-payment of rent by a tenant and to assign the lease to a purchaser in the event of a power of sale proceeding.

The only difference between a general assignment of rents and leases and a specific assignment of rents and leases is the revenue streams and leases to which they apply. A general assignment of rents and leases applies to all present and future rental income and leases in respect of a particular property. Once in place, a general assignment of rents and leases gives the lender a right to the rental income and the ability to exercise all of the rights of the landlord under a lease in respect of all leases of the property, including but not limited to any new leases, subleases or assignments of lease entered into after the assignment is granted and registered. In contrast to this, a specific assignment of rents and leases only applies to leases which are specifically listed in the document. In the event that any of the specifically listed leases expire or are terminated, and/or a new lease or sublease is put in place, the specific assignment of leases will not apply to this new lease or sublease and the lender will have no right to the rental income or rights resulting from the new lease or sublease.

In most lending situations, the lender will prefer a general assignment of rents and leases as it provides the most comprehensive security. The lender will have security over all rental income, and be able to exercise the rights of the landlord, regardless of who the tenants are in the future, or what leases the borrower has in place at the time of default under the terms of the loan or credit facility. However, where there is a principal or anchor tenant that represents a preponderance of the rental income, and/or the borrower objects to a general assignment of rents and leases securing all rents and leases as too broad a security interest, the lender may only be interested in securing the rental income and landlord rights associated with a specific principal or anchor lease, or a particular group of leases. In such a situation, a specific assignment of rents and leases may be a reasonable compromise position for a lender to adopt. Alternatively, in situations where multiple lenders are taking security in a particular parcel of real property, specific assignments of rents and leases allow the various lenders to divide the rental income and leases among themselves, with each lender only obtaining security in a specifically agreed upon lease or group of leases.

The above is a general overview of general and specific assignments of rents and leases.

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