Assignment of Rent
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Basic Information
Date:
Assignor:
Assignor’s Mailing Address:
Assignee:
Assignee’s Mailing Address:
Note
Date:
Original principal amount:
Borrower:
Lender:
Deed of Trust
Date:
Borrower:
Lender:
Trustee:
Property:
Current Leases: [include recording information if available]
Clauses and Covenants
For value received, as a supplement to the Deed of Trust, Assignor collaterally assigns to Assignee all current and future rent from the Property. Leases are not assigned.
A.Assignor’s Representations
Assignor represents the following:
A.1.This assignment is valid and enforceable.
A.2.The Current Leases are valid, have not been modified or amended except as stated, have not been previously assigned, and are subject to no security interests.
A.3.Without the prior written consent of Assignee, Assignor will not modify any material term in any lease covering the Property, exercise or forfeit any option in a lease, or accept payment of rent more than one month before its regular monthly payment date.
A.4.Assignor will perform all the obligations of the lessor in all leases covering the Property.
A.5.Assignor will promptly inform Assignee of all material events concerning the leases covering the Property.
A.6.Assignor will keep accurate records of all aspects of leases covering the Property and on request will make them available for Assignee’s examination.
A.7.Assignor will apply all rent from the Property to payment of the Note and performance of the obligations in the Deed of Trust, but if the rent exceeds the amount due under the Note and the Deed of Trust, Assignor may retain the excess.
B.Default and Remedies
B.1.If a default exists in payment of the Note or performance of any obligation in the Deed of Trust or this assignment and the default continues after any required notice of the default and the time allowed to cure, Assignee may—
a.exercise Assignee’s rights with respect to rent under the Texas Property Code as then in effect;
b.increase or reduce rent or change the terms of any lease, if permitted;
c.enter into new leases in the name of Assignor or otherwise on terms that Assignee chooses; and
d.sue for the collection of unpaid rent, to cancel any lease in default, and for possession of any portion of the Property covered by a lease in default.
B.2.Assignee will apply all rent collected under this assignment as required by the Texas Property Code as then in effect.
B.3.Assignee may elect not to collect rent under this assignment, but that election will not prejudice Assignee’s right to collect rent subsequently. Assignee will never be liable for failure to collect rent but will be accountable for rent received before foreclosure of the Deed of Trust.
B.4.By exercising rights and remedies under this assignment, Assignee does not waive the right to enforce the Note or the Deed of Trust.
C.General Provisions
C.1.Assignee’s collection of rent from the Property does not relieve Assignor of any obligations in the Note and the Deed of Trust.
C.2.Neither acceptance of this assignment nor any other act of Assignee under this assignment will be construed as a waiver of the priority of the Deed of Trust lien as to any lease or contract.
C.3.This assignment binds, benefits, and may be enforced by the successors in interest of the parties.
C.4.This assignment terminates on release of the Deed of Trust. At Assignor’s expense, Assignee will sign a release of this assignment in recordable form.
C.5.Assignee does not have or assume any obligations as lessor to any occupant of the Property.
C.6.Assignee may exercise Assignee’s rights and remedies in this assignment without taking possession of the Property.
C.7.When the context requires, singular nouns and pronouns include the plural.
[Name of assignor]
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Include acknowledgment. |