Renting Commercial Property
|Posted by: Victor Barnwell Jul 17 2004, 08:21 PM
|Does anyone know if there are any legal stipulations for leasing property for a non-profit organization that has been purchased with a commercial loan?
|Posted by: loanuniverse Jul 19 2004, 01:04 PM
|“Does anyone know if there are any legal stipulations for leasing property for a non-profit organization that has been purchased with a commercial loan?”
I am not sure about the specifics. However, the way I see it a commercial loan normally does not put limitations as to the use of the property. There might be some restrictions on the whole transaction that might be present in the “commitment letter”, which usually has a “survivability clause” or there could have been some representations made to the lender that would be in conflict with the new use, but then we are talking about specifics that I am not privy too.
You would need to review all of the documentation to find them, and I recommend that this is done with the benefit of counsel preferably an attorney knowledgeable of banking and real estate.