Assignment of Rents by Lessor

COMPANY LETTERHEAD

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

ASSIGNMENT OF RENTS BY LESSOR

THIS ASSIGNMENT OF RENTS (hereinafter referred to as the “Assignment”) is made and entered into this {{day}} day of {{month}}, {{year}},

BY AND BETWEEN:

{{lessor_company_name}}, a company duly incorporated in accordance with the laws of {{country}}, with its principal place of business at {{lessor_address}} (hereinafter referred to as the “Lessor”);

AND

{{assignee_company_name}}, a company duly incorporated in accordance with the laws of {{country}}, with its principal place of business at {{assignee_address}} (hereinafter referred to as the “Assignee”).

RECITALS

WHEREAS, the Lessor is the owner of certain immovable property situated at {{property_address}} (hereinafter referred to as the “Property”), legally described as {{legal_description_of_property}}.

WHEREAS, the Lessor has entered into a lease agreement dated {{lease_agreement_date}} with {{tenant_name}} for the lease of the Property (hereinafter referred to as the “Lease Agreement”).

WHEREAS, the Lessor desires to assign to the Assignee all its right, title, and interest in and to the rents, issues, and profits arising from the Lease Agreement and the Property.

WHEREAS, the Assignee has agreed to accept such assignment, subject to the terms and conditions hereinafter set forth.

ARTICLE 1: ASSIGNMENT OF RENTS

1.1 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Lessor does hereby irrevocably assign, transfer, and set over unto the Assignee all of the Lessor’s right, title, and interest in and to all rents, issues, income, and profits now due or which may hereafter become due from the said Property under the Lease Agreement, or any renewals or extensions thereof, or any new leases entered into concerning the Property (hereinafter collectively referred to as the “Rents”).

1.2 This Assignment is intended to be an absolute and unconditional assignment and not merely the granting of a security interest.

ARTICLE 2: PURPOSE OF ASSIGNMENT

2.1 This Assignment is made to secure the payment of {{amount}} ({{currency}}), owed by the Lessor to the Assignee under a loan agreement dated {{loan_agreement_date}} (hereinafter referred to as the “Loan Agreement”), and the performance of all covenants and obligations of the Lessor under the Loan Agreement and any other related documents.

2.2 The Assignee is hereby authorized to collect and receive the Rents directly from the tenant(s) of the Property.

ARTICLE 3: REPRESENTATIONS AND WARRANTIES OF LESSOR

3.1 The Lessor hereby represents and warrants to the Assignee that:

(a) The Lessor is the sole and absolute owner of the Property and has full right and authority to enter into this Assignment.

(b) The Lease Agreement is valid, binding, and in full force and effect.

(c) There are no prior assignments, encumbrances, or liens on the Rents not disclosed herein.

(d) The Lessor has not previously assigned or hypothecated the Rents due or to become due from the Property.

ARTICLE 4: COVENANTS OF LESSOR

4.1 The Lessor covenants and agrees with the Assignee that:

(a) The Lessor will not, without the prior written consent of the Assignee, terminate, amend, or modify the Lease Agreement, or accept any prepayment of Rents for more than one month in advance.

(b) The Lessor will perform all obligations on its part to be performed under the Lease Agreement.

(c) The Lessor will take all reasonable steps to enforce the terms of the Lease Agreement against the tenant(s).

(d) The Lessor will promptly notify the Assignee of any default by the tenant(s) under the Lease Agreement.

ARTICLE 5: INDEMNIFICATION

5.1 The Lessor agrees to indemnify and hold harmless the Assignee from and against any and all liabilities, losses, damages, costs, and expenses (including reasonable legal fees) incurred by the Assignee arising out of or in connection with this Assignment or the Lease Agreement, except to the extent caused by the Assignee’s gross negligence or willful misconduct.

ARTICLE 6: GOVERNING LAW AND JURISDICTION

6.1 This Assignment shall be governed by and construed in accordance with the laws of {{country}}.

6.2 Any dispute arising out of or in connection with this Assignment shall be subject to the exclusive jurisdiction of the courts of {{country}}.

ARTICLE 7: GENERAL PROVISIONS

7.1 This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

7.2 No amendment or modification of this Assignment shall be valid unless in writing and signed by both parties.

7.3 If any provision of this Assignment is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Assignment on the date first above written.

FOR THE LESSOR:

___________________________

Name: {{lessor_signatory_name}}

Title: {{lessor_signatory_title}}

FOR THE ASSIGNEE:

___________________________

Name: {{assignee_signatory_name}}

Title: {{assignee_signatory_title}}

WITNESSES:

1. ___________________________

Name: {{witness_1_name}}

ID No: {{witness_1_id_number}}

2. ___________________________

Name: {{witness_2_name}}

ID No: {{witness_2_id_number}}