The Washington Assignment of Leases and Rents as Collateral Security for a Commercial Loan is a legal document that serves as a means of securing a commercial loan by assigning the lease and rental income from a property to the lender. This arrangement allows the lender to have a claim on the rental income generated by the property in the event of default or non-payment of the loan. In Washington State, there are several types of Assignment of Leases and Rents for commercial loans that can be utilized depending on the specific circumstances. These include: 1. Full Assignment: Under this type of assignment, the borrower assigns all rights and interests in the leases and rental income to the lender. This gives the lender full control over the collection and application of rental proceeds. 2. Limited Assignment: In some cases, the borrower may choose to assign only a portion of the leases and rental income to the lender. This allows the borrower to retain some control over the rentals, while still providing the lender with collateral security. 3. Conditional Assignment: A conditional assignment of leases and rents sets specific conditions that must be met for the assignment to take effect. For example, the lender may require the borrower to default on the loan before assuming control over the rental income. 4. Absolute Assignment: An absolute assignment transfers all rights and interests in the leases and rental income to the lender without any conditions or limitations. This type of assignment gives the lender complete control over the rental proceeds from the property. The primary purpose of a Washington Assignment of Leases and Rents as Collateral Security for a Commercial Loan is to protect the lender's interests in the event of default, providing a means for recovering the outstanding loan amount from the rental income. It additionally offers security and assurance to the lender, enabling them to make more favorable loan terms and conditions. It is important for both borrowers and lenders to consult legal professionals experienced in Washington State commercial real estate laws when drafting, reviewing, or enforcing Assignment of Leases and Rents documents. Each type of assignment may have specific requirements and implications that should be carefully understood and evaluated by all parties involved.