Lease agreements, particularly for industrial companies, can leave the tenants' lenders in the lurch if important rights to collateral are left unaddressed. Companies often obtain financing to acquire expensive equipment or fund their business operations. Equipment lenders obtain security interests in the financed equipment and credit facility lenders usually acquire security interests in most of the companies' assets as collateral for the loans, including equipment, inventory and other personal property. A company that leases its manufacturing, distribution or warehouse facilities is sometimes required by its lender to obtain certain rights from its landlord to further protect the lender's collateral. These rights are commonly set forth in a separate, tri-party agreement among the landlord, tenant and tenant’s lender. This article discusses the rights that may be demanded by a lender with respect to its collateral and the protections and limitations a landlord should seek in exchange for granting those rights. ...

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