A secured creditor's right to postdefault rents from mortgaged commercial property will hinge on its taking prompt action to collect those rents pursuant to the assignment of rents clause contained in the mortgage or deed of trust. This Note examines the secured creditor's right to receive post default rents under an assignment of rents clause under California law and in bankruptcy cases applying California law. The Note formulates recommendations for a secured creditor attempting to draft such a clause and suggests ways to collect post default rents pursuant to such a clause. Particular attention is focused on changes brought about by the Bankruptcy Reform Act of 1978.
Assignment of Rents Clauses under California Law and in Bankruptcy: Strategy for the Secured Creditor,
31 Hastings L.J. 1433
Available at: https://repository.uchastings.edu/hastings_law_journal/vol31/iss6/5