Harris Texas Assignment of Leases and Rents as Collateral Security for a Commercial Loan is a legal agreement in which a borrower assigns their rights to lease agreements and rental income from a property as collateral when obtaining a commercial loan in Harris County, Texas. This arrangement provides lenders with an additional layer of protection in case the borrower defaults on the loan. The Assignment of Leases and Rents is a crucial document that is commonly used in commercial loan transactions. It allows lenders to collect rental income directly from tenants if the borrower fails to meet their repayment obligations. By assigning lease agreements and rental income as collateral, lenders can ensure a continuous cash flow and an alternative source of repayment. There are various types of Assignment of Leases and Rents agreements based on the specific requirements and circumstances: 1. Absolute Assignment: In this type of agreement, the borrower assigns all lease agreements and rental income to the lender without any conditions or restrictions. It provides the lender with full control and rights over the property's cash flow. 2. Conditional Assignment: This agreement assigns lease agreements and rental income to the lender only if the borrower defaults on the loan. It acts as a security mechanism and ensures that the lender can step in and collect the rents if necessary. 3. Partial Assignment: A partial assignment involves assigning only a portion of the lease agreements and rental income to the lender. This type of agreement is often used when dealing with multiple properties or when the borrower wants to retain some control over the rents. 4. Specific Assignment: This agreement assigns a specific lease agreement or rental income stream to the lender. It can be used when the borrower wants to secure a particular source of income or when dealing with a specific tenant or property. It's important to note that the Assignment of Leases and Rents as Collateral Security for a Commercial Loan is a legally binding document that should be drafted and reviewed by qualified professionals such as lawyers or real estate agents familiar with Texas laws and regulations.