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 mortgage and mezzanine loans secured directly or indirectly by commercial real estate. 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 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. 24 pages)

Cash Management for Commercial Real Estate Loans

by Practical Law Real Estate
MaintainedUSA (National/Federal)
A Practice Note explaining cash management structures for mortgage and mezzanine loans secured directly or indirectly by commercial real estate. 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 discusses the perfection of a security interest in accounts under the Uniform Commercial Code (UCC).