Cash Management for Commercial Real Estate Loans | Practical Law

Cash Management for Commercial Real Estate Loans | Practical Law

A Practice Note explaining cash management structures for commercial real estate mortgage and mezzanine loans. It describes the flow of cash from the property as it flows through a lockbox, clearing account, cash management account, and reserve accounts, identifying issues that arise for borrowers and lenders at each stage. This Note also briefly discusses the perfection of a security interest in accounts under the Uniform Commercial Code (UCC).

Cash Management for Commercial Real Estate Loans

Practical Law Practice Note 8-595-5927 (Approx. 23 pages)

Cash Management for Commercial Real Estate Loans

by Practical Law Real Estate
MaintainedUSA (National/Federal)
A Practice Note explaining cash management structures for commercial real estate mortgage and mezzanine loans. It describes the flow of cash from the property as it flows through a lockbox, clearing account, cash management account, and reserve accounts, identifying issues that arise for borrowers and lenders at each stage. This Note also briefly discusses the perfection of a security interest in accounts under the Uniform Commercial Code (UCC).