Finance
What is a 'collateral assignment of leases and rents' in Rhode Island commercial financing?
AA lease assigned to a new tenant as collateral
BAn assignment of the property owner's right to receive rents to the lender as additional security for the mortgage loan✓ Correct
CA rent reduction in exchange for a lower interest rate
DA lease with the lender as co-tenant
Explanation
A collateral assignment of leases and rents gives the lender the right to receive rental income from the property in the event of default, providing an additional security interest beyond the mortgage lien.
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