Under both the prior version of the Bankruptcy Code and BAPCPA, debtors may assign their rights in a lease to
an entity that then designates who the replacement tenant is for the remaining lease term.
SECURITY DEPOSITS: It's fairly common for a lease to
require you to pay the lessor a security deposit.
In an August 20 letter from TEI President Charles Shewbridge, the Institute explained that subsection 136.1(1) was enacted to treat each leasing period as a separate supply to ensure that either GST or HST (harmonized sales tax) was imposed, based on the physical location of the leased good at the beginning of the "leasing interval." Proposed amendments to the subsection would deem the exercise of an option to purchase tangible personal property under a lease to
occur at the time and place at which the person begins to have possession as a purchaser.
On the other hand, you can lease that same car for less than $500 per month and roll over the lease to
another new model at the end of four years.
The term excludes lease renewal options (and any other period for which the parties reasonably expect the lease to
be renewed) if 75% or more of the lease acquisition cost is attributable to the lease term remaining at the acquisition date.
You'll also want the lease to
stipulate that your company has the right to "quietly enjoy" uninterrupted use of the equipment as long as you continue to pay the leasing fees and comply with the lease terms.
* Rents that are based on a percentage of lessee receipts or that reflect the lessee's obligation under the lease to
pay certain lessor costs.
Leases within Hartz's northern New Jersey industrial holdings accounted for much of the quarter's activity, with a large office lease to
Kenneth Cole at Harmon Meadow in Secaucus.
Thus, a recharacterization from an operating lease to
a financing lease or vice versa would not be treated as a change in method of accounting.
Firms that have renewed their leases or expanded their space include: IDAMAR Enterprises, which expanded its long-term lease to
include both the entire 4,623-square-foot 20th floor and 1,310 square feet of the 13th floor; the renewal by the law firm of Levy, Ehrlich & Petriello of its long-term 5,725-square-foot lease, a space they have occupied since 1958.
As part of its reorganization strategy, Boo.com planned to reassign the lease to
Radical Media, which would pay $350,000 for the lease and the telephone system and another $150,000 for reimbursement of Boo.com's security deposit.
The failure of the lease to
address the issue of tax refund allows the plaintiff to seek recovery of the refund on the theory of unjust enrichment.
A debtor-tenant has the right under bankruptcy law, under certain conditions, to "assume" a lease for its ongoing business, or to assume and assign the lease to
someone else for the profit of the bankruptcy estate.
"There's a provision where the owner is supposed to countersign and return the lease to
the tenant within 30 days of the owner's receipt of the renewal lease as signed by tenant.
A landlord's most drastic, and often most effective remedy where a tenant is in default is to - following the procedures of the so-called "conditional limitation" clause - declare the lease to