Letters of Credit in Lease Transactions, Pt I: Advantages to Landlord and Landlord?s Lender
Susan Fowler McNally, Carter Klein, and Michael Abrams
28 PROBATE& PROPERTY JULY/AUGUST 2002 Landlords generally prefer to enter into leases with creditworthy tenants—tenants with high and demonstrable net worth, substantial tangible and liquid assets, and a long track record of successful operatiio and paying bills. Most landlords do not have that luxury. Moreover, even tenants that start out cash flush or rock solid can suffer credit deterioration to the point that they become high-risk tenants long before the normal commercial lease expires...