collateral assignment of leases and rents

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Russell 2000, bitcoin usd, cmc crypto 200, assignment of leases and rents: absolutely collateral.

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Jeffrey B. Steiner[/caption] Generally speaking, rents comprise the principal income derived from commercial real property ownership prior to the sale of the property. In traditional, non-recourse lending, where the special purpose entity borrower may become insolvent, lenders rely on the rent and related income from the property as security for the loan. One mechanism employed by commercial mortgage lenders to secure their interest in the rental stream is to require in the mortgage document an assignment of leases and rents pursuant to which the borrower ‘presently and absolutely’ assigns to the lender the rents from the real property. In turn, the lender grants the borrower a license, revocable upon an event of default, to collect and use the rents. Lenders have elected to include the language purporting to affect a “present” and “absolute” transfer with the hope of achieving the benefits of an “absolute” assignment of the rents over a “collateral” assignment. If the assignment is deemed to be an “absolute” transfer of legal title of the rents from the borrower to the lender, then such assignment would become enforceable immediately upon an event of default and revocation of borrower’s license to collect and use the rents—meaning, that the lender would have the right and ability to collect the rents directly from the tenants as soon as an event of default has occurred. By contrast, if the assignment is considered “collateral,” the lender runs the risk that, following an event of default and a resulting borrower bankruptcy, the rents will be deemed property of the bankruptcy estate, subject to a bankruptcy plan and protected by the Bankruptcy Code’s automatic stay. Case Law New York case law surrounding the treatment of assignments of leases and rents, whether by “absolute” or “collateral” assignment nominally suggests that judges will give effect to the intended purpose of these assignments, ignoring such “absolute” assignment language and interpreting the assignment as a “collateral” one for the mortgage loan. For this reason, a majority of New York state courts have ruled that lenders cannot create an absolute assignment of leases and rents in a mortgage transaction regardless of the language used. In Dream Team Assocs. v. Broadway City , 2003 N.Y. Slip Op 50894U, 2003 WL 21203342 (N.Y.Civ.Ct. May 7, 2003), for instance, the court addressed the question of whether an assignment of rents constitutes an absolute assignment and ruled that “[u]nder New York law…the language used in the assignment instrument itself is not determinative of what rights are actually transferred.” Relying on the fact that New York is a “lien theory” state rather than a “title theory” state, state courts typically hold that an assignment of leases and rents, regardless of the wording of the provision or form taken, will not be a present assignment when given as security for the loan. It follows then that, if assignments of rents do not serve to transfer immediate title to the rents, they instead transfer equitable title and constitute a pledge of the rents to which the lender cannot become entitled until taking some extra, affirmative enforcement steps. In In re Soho 25 Retail , No. ADV. 11-1286-SHL, 2011 WL 1333084, at *6–8 (Bankr. S.D.N.Y. March 31, 2011), the court sought to summarize certain potential steps to enforcement as follows: “requesting the appointment of a receiver to collect the rents, demanding or taking possession [of the property], commencing foreclosure proceedings, or seeking an order for the sequestration of rents.” These additional, affirmative steps do not seem onerous at first glance. However, as any mortgage lender will attest, the foreclosure process in New York State is slow. Furthermore, mortgage lenders are properly advised to avoid the exercise of any such rights prior to an appointment of a receiver or the consummation of foreclosure for fear of being found to be a mortgagee in possession, which could cause lenders to be deemed to have assumed all of the same duties and liabilities of the owner of the property. The rule was recently restated by the court in Allen v. Echeverria , 11 N.Y.S.3d 170, 173 (N.Y. App. Div. 2015), that is, a mortgagee who takes possession of the property mortgaged as collateral is “bound to employ the same care and supervision over the mortgaged premises that a reasonably prudent owner would exercise in relation to his own property; he is bound to make reasonable and needed repairs, and is responsible for any loss or damage occasioned by his willful default or gross neglect in this regard.” Most commercial mortgage lenders are not in the business of managing properties and do not want to be subject to the liability that could arise during such management, especially when the title to the property remains vested in an adverse party, i.e., its defaulted borrower. In light of the bankruptcy risks and the potential that an assignment of rents will not be deemed an absolute assignment, vigilant lenders will avail themselves of alternative mechanisms to exert control over the rents, namely, (i) cash management arrangements and (ii) guaranties that provide for liability in the event of a misappropriation of the rents. Through “lockbox” arrangements between the lender, the borrower and third-party banks, lenders will control the rents deposited by tenants directly into such lender-controlled clearing accounts. The rents will then be distributed according to the terms agreed upon by the parties at closing or otherwise at the direction of the lender in order to pay debt service and to accumulate reserves for the payment of property taxes and insurance. Borrowers will typically have no right to access these funds and, in all cases following an event of default, the banks will be prohibited from following any instructions received from borrowers. For loans in which lenders perceive greater risk, they can structure cash management to exercise greater control of the rents and to make less funds available to the borrower, decreasing the risk that rents will be misused. Additionally, loan documents always provide that, during an event of default, the rents deposited into the cash management accounts will be deemed to be additional collateral for the loan and may be applied by the lender to pay down the debt in lender’s sole discretion. Lenders may also protect against the misuse of rents by including a carve-out to the non-recourse nature of the mortgage loan in a guaranty executed by a borrower-affiliated person or entity. In such a guaranty, the guarantor will be liable to the lender to the extent of any loss suffered by the lender due to the misapplication or misappropriation of rents by the borrower or its affiliates.

Mortgage lenders should not rely on assignments of leases and rents, whether as a clause in the mortgage or as a separate agreement, to protect their interests in the income from their collateral prior to the appointment of a receiver or the final sale of the property at foreclosure. The enforcement of these agreements may take considerable time and money before the lender even gains a legal right to collect rents. Lenders should account for these risks by taking other legal measures which grant them greater control and actually give them enforceable rights immediately upon default. Jeffrey B. Steiner is a member of DLA Piper. Shane Goodhue, a law clerk (assoc.) at the firm, assisted in the preparation of this article.

Assignment Of Leases And Rents

Jump to section, what is an assignment of leases and rents.

The assignment of leases and rents, also known as the assignment of leases rents and profits, is a legal document that gives a mortgage lender right to any future profits that may come from leases and rents when a property owner defaults on their loan. This document is usually attached to a mortgage loan agreement.

Assignment of leases and rents allows lenders to a degree of financial protection in case a loan default occurs. This document is an agreement made between a borrower and a lender of mortgage loans. It often details an exact amount the lender will be entitled to if a default happens.

Common Sections in Assignments Of Leases And Rents

Below is a list of common sections included in Assignments Of Leases And Rents. These sections are linked to the below sample agreement for you to explore.

Assignment Of Leases And Rents Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.9 10 d368735dex109.htm ASSIGNMENT OF LEASES AND RENTS , Viewed October 4, 2021, View Source on SEC .

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2013 Louisiana Laws Revised Statutes TITLE 9 - Civil Code-Ancillaries RS 9:4401 - Conditional or collateral assignment of leases or rents

PART IV. PLEDGE OR ASSIGNMENT OF LEASES AND RENTS

§4401. Conditional or collateral assignment of leases or rents

A. Any obligation may be secured by an assignment by a lessor or sublessor of leases or rents, or both leases and rents, pertaining to immovable property. Such assignment may be expressed as a conditional or collateral assignment, and may be effected in an act of mortgage, by a separate written instrument of assignment, or by a separate written instrument of pledge, and may be referred to, denominated, or described as a pledge or an assignment, or both. The instrument shall state the amount of the obligation secured thereby or the maximum amount of the obligation that may be outstanding at any time from time to time that such assignment secures. If such conditional or collateral assignment is made, it shall become absolute upon the assignor's default in respect to the obligation thereby secured or in accordance with the terms of the instrument creating such assignment, and shall become operative as to the debtor upon written notice to the debtor from or on behalf of the assignee or the assignor that such assignment has so become absolute.

(1) An assignment relating to a lease or rent of an immovable is given the effect of recordation when an original or a certified copy of the instrument creating the assignment is filed in the conveyance records of the parish in which the immovable is situated; however, an assignment contained in an act of mortgage filed in the mortgage records of such parish on or after September 1, 1995, shall be given the effect of recordation when, to the extent, and for so long as the act of mortgage is given such effect, without the need for separate recordation in the conveyance records. An assignment given the effect of recordation has such effect with regard to all obligations, present and future, secured thereby notwithstanding the date of the incurrence of such obligations or the nature of such obligations.

(2) Such assignment may include all or any portion of the assignor's presently existing and anticipated future leases and rents pertaining to the described immovable property. As future leases or rents of an immovable come into existence the assignee's rights as to such leases and rents shall have effect as to third persons from the date of the filing of the instrument. It shall not be necessary to specifically describe the presently existing or future arising leases or rents; to affect the assignor, the assignee, the debtor, or other third parties the instrument shall suffice if it contains a general description of the leases and rents together with a description of the immovable affected by the lease. The immovable property description shall be the kind of description which, if contained in a mortgage of the immovable, would cause such mortgage to be effective as to third persons if the mortgage were properly filed for record under the laws of this state.

(3) Once an assignment relating to leases or rents of an immovable is so filed, the assignee shall have a superior claim to the leases and rents assigned and their proceeds as against all other creditors whose claims or security interests arise or are perfected after the filing of the assignment, notwithstanding the fact that the debtor is not notified of or does not consent to the assignment or that the assignee is not in possession of the immovable property.

(4) Except for purposes of Subsection G, the term "lease" as used in this Section includes a sublease.

B. This Section is intended to recognize one method of securing obligations, and shall not have the effect of repealing any other provision of law in respect to pledge, pawn, and assignment of incorporeal rights.

C. This Section is remedial and shall be retroactive. All assignments of leases or rents heretofore made in compliance with the provisions of this Section are hereby validated.

D. A landowner or mineral servitude owner may make a conditional or collateral assignment pursuant to this Section of rents, royalties, delay rentals, shut-in payments, and other payments which are rent or rentals under Title 31 of the Louisiana Revised Statutes attributable to the landowner's sale, lease, or other disposition of his right to explore and develop his land for production of minerals or to the mineral servitude owner's sale, lease, or other disposition of his mineral right. This Section shall not otherwise apply to rents, royalties, overriding royalties, bonuses, and other payments and other rights under mineral leases and other contracts relating to minerals.

E. This Section shall apply to assignments of leases of movable property subject to the Louisiana Lease of Movables Act entered into prior to the time Chapter 9 of the Louisiana Commercial Laws (R.S. 10:9-101, et seq.) becomes effective, including without limitation those assignments of leases that affect rights arising after the effective date of Chapter 9 and those continuing assignments that may secure future obligations, lines of credit, and other ongoing credit facilities. This Section shall further apply to assignments of leases of immovable property located in this state without regard to the time Chapter 9 becomes effective.

F.(1) Except as otherwise agreed to by the parties, the assignee's interest in the leases or rents assigned continues in any identifiable proceeds including collections received by the assignor.

(2) In the event of insolvency proceedings instituted by or against an assignor, the assignee has a perfected security interest in proceeds of the leases or rents or both leases and rents assigned, as follows:

(a) In identifiable noncash proceeds and in separate deposit accounts containing only proceeds.

(b) In identifiable cash proceeds in the form of money which is neither commingled with other money nor deposited in a deposit account prior to the insolvency proceedings.

(c) In identifiable cash proceeds in the form of checks and the like which are not deposited in a deposit account prior to the insolvency proceedings.

(d) In all cash and deposit accounts of the assignor in which proceeds have been commingled with other funds, but the perfected security interest under this Section is subject to any right of set-off. It is further limited to an amount not greater than the amount of any cash proceeds received by the assignor within ten days before the institution of the insolvency proceedings, less the sum of:

(i) the payments to the assignee on account of cash proceeds received by the assignor during such period; and

(ii) the cash proceeds received by the assignor during such period to which the assignee is entitled under Paragraphs (a) through (c) of Subsection F(2).

G.(1) The rights of an assignee against the debtor shall be subject to any dealing by the debtor with the assignor, any other assignee, or other successor in interest of the assignor until the debtor receives written notice from or on behalf of the assignee or the assignor that the assignment of the particular lease or rent of which he is debtor has become absolute. A notification which does not reasonably identify the rights assigned is ineffective. If requested by the debtor, the assignee must seasonably furnish reasonable proof that the assignment has been made and unless he does so the debtor may pay the assignor.

(2) Except as provided in this Subsection (G), a debtor who has received written notice that the assignment has become absolute will not be discharged from his debt if he pays anyone other than the assignee. In any case in which a debtor is not notified of the assignment made in compliance with the provisions of this Section and, in good faith, makes payment of rent in whole or in part to the assignor or the assignor's successor, or to a subsequent assignee of the rent who shall have notified the debtor of that assignment, then to the extent of payment, the debtor shall be exonerated of liability to make payment to the first assignee; however, the person to whom payment was made shall be accountable and liable to the assignee for the sums received. The debtor may, at its option, commence concursus proceedings instead of making payment to the assignor or the assignee.

(3) Notwithstanding the debtor's receipt of written notice of the assignment, a modification of or substitution for the lease made in good faith and in accordance with reasonable commercial standards is effective against an assignee, unless the debtor has otherwise agreed with the assignee. In either event the assignee acquires rights under the modified or substituted lease corresponding to the assignee's rights under the original lease. No termination or modification of or substitution for a lease shall be effective against an assignee as to the right to the payment of rent or a part thereof under an assigned lease which has been fully earned by performance. The assignment may provide that modification of or substitution for the lease is a default by the assignor.

(4) A term in any lease between a debtor and an assignor is ineffective if it prohibits assignment of rent or prohibits creation of a security right in rent due or to become due or requires the debtor's consent to such assignment of rent or security interest in rent.

(5) The mere existence of a conditional or collateral assignment does not impose contract or tort liability upon the assignee for the assignor's acts or omissions relating to such leases.

H.(1) The effect of recordation of all assignments recorded on or after September 1, 1990, ceases ten years after the date of the instrument creating the assignment, except, that if an instrument creating an assignment describes the maturity of an obligation secured thereby and if any part of the described obligation matures nine years or more after the date of the instrument, the effect of recordation ceases six years after the described maturity date. A recorded instrument creating an assignment may be reinscribed by filing a signed, written notice of reinscription. The notice shall state the name of the assignor as it appears in the recorded instrument and recordation number or other appropriate recordation information of the instrument or of a prior notice of reinscription and shall declare that the instrument is reinscribed. A notice of reinscription that is filed before the effect of recordation ceases continues that effect for ten years from the date the notice is filed. A notice of reinscription that is filed after the effect of recordation ceases produces the effects of recordation, but only from the date the notice is filed. The method of reinscription provided in this Section is exclusive, and neither an amendment of an instrument creating an assignment nor an acknowledgment of the existence of an assignment by the assignor constitutes a reinscription of the instrument. Notwithstanding the foregoing, the effect of recordation of an assignment contained in an act of mortgage filed on or after September 1, 1995, continues for so long as the act of mortgage is given the effect of recordation. In such cases, reinscription of the act of mortgage constitutes reinscription of the assignment contained therein.

(2) Notwithstanding the foregoing provisions, the effect of registry of all assignments recorded on or before August 31, 1990, shall be determined by the other laws of registry applicable thereto.

(3) The recordation of an assignment may be cancelled by the consent of the assignee evidenced by any written release, under private signature or otherwise. Cancellation or erasure of an act of mortgage containing an assignment constitutes cancellation of the assignment contained therein, whether the act of mortgage was recorded in the mortgage records or conveyance records, or both.

I. The provisions of R.S. 9:4401(A), as amended and reenacted, and the provisions of R.S. 9:4401(G) and (H) as enacted by Acts of the 1990 Regular Session are remedial and shall, wherever possible, be given retroactive effect. All assignments of present and future leases or rents heretofore made in compliance herewith are hereby validated.

Added by Acts 1980, No. 321, §1; Acts 1985, No. 592, §5, eff. July 13, 1985; Acts 1987, No. 130, §1, eff. June 18, 1987; Acts 1989, No. 137, §4, eff. Sept. 1, 1989; Acts 1990, No. 1079, §3, eff. Sept. 1, 1990; Acts 1995, No. 1087, §3.

Disclaimer: These codes may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

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5 elements to include in collateral assignment of lease/landlord’s waiver.

06/20/2012 | by Gary D. Buchman

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Landlords of commercial properties are often asked to sign a collateral assignment of lease and a waiver of the landlord’s lien on a tenant’s trade fixtures and equipment in favor of the tenant’s equipment lender or franchisor.  The usual form presented permits the lender/franchisor to enter the leased premises in the event of a tenant default under its equipment loan or franchise agreement, in order to repossess equipment and trade fixtures.  This may occur notwithstanding that such a default of tenant’s loan arrangements is not a default under the lease.  When coupled with a collateral assignment of lease, the lender/franchisor will have a right to occupy the premises and to subsequently assign tenant’s leasehold to a new tenant/franchisee.

From a landlord’s perspective, there are several key elements to incorporate into these documents:

  • The obligation of the lender/franchisor to remove the equipment and trade fixtures at, or promptly after, expiration of the lease;
  • The obligation of the lender/franchisor to pay rent and other charges during its possession of the premises;
  • The obligation of the lender/franchisor to restore any damage to the premises resulting from removal of equipment and trade fixtures;
  • The right of the landlord to approve any future tenant that lender/franchisor may wish to take the place of the existing tenant; and
  • The continuing obligation of the existing tenant, notwithstanding the collateral assignment of the lease and any subsequent repossession or assignment of the lease by the lender/franchisor.

collateral assignment of leases and rents

Gary D. Buchman – Partner

Gary D. Buchman is a partner in the firm’s Real Estate Department.

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Mortgage, Assignment of Leases and Rents, Security Agreement, Financing Statement, and Fixture Filing (Pro-Lender Short Form) | Practical Law

collateral assignment of leases and rents

Mortgage, Assignment of Leases and Rents, Security Agreement, Financing Statement, and Fixture Filing (Pro-Lender Short Form)

Practical law standard document 8-560-5825  (approx. 52 pages).

collateral assignment of leases and rents

Assignment of Rents – What, Why, and How?

Assignment of Rents – What, Why, and How

Article by:

Madelaine prescott, esq., share this post:.

  • November 29, 2023

These days, almost all commercial loans include an Assignment of Rents as part of the Deed of Trust or Mortgage. But what is an Assignment of Rents, why is this such an important tool, and how are they enforced?

An Assignment of Rents (“AOR”) is used to grant the lender on a transaction a security interest in existing and future leases, rents, issues, or profits generated by the secured property, including cash proceeds, in the event a borrower defaults on their loan. The lender can use the AOR to step in and directly collect rental payments made by the tenant. For an AOR to be effective, the lender’s interest must be perfected, which has a few fairly simple requirements. The AOR must be in writing, executed by the borrower, and recorded with the county where the property is located. Including an AOR in the recorded Deed of Trust or Mortgage is the easiest and most common way to ensure the AOR meets these requirements should it ever need to be utilized.

When a borrower defaults, lenders can take advantage of AORs as an alternative to foreclosure to recoup their investment. With a shorter timeline and significantly lower costs, it is certainly an attractive option for lenders looking to get defaulted borrowers back on track with payments, without the potential of having to take back a property and attempting to either manage it or sell it in hopes of getting your money back out of the property. AORs can be a quick and easy way for the lender to get profits generated by the property with the goal of bringing the borrower out of default. But lenders should carefully monitor how much is owed versus how much has been collected. If the AOR generates enough funds so that the borrower is no longer in default, the lender must stop collecting rents generated by the property.

Enforcement of an AOR can also incentivize borrowers to work with the lender to formulate a plan, as many borrowers rely on rental income to cover expenses related to the property or their businesses. Borrowers are generally more willing to come to the table and negotiate a mutual, amicable resolution with the lender in order to protect their own investment. A word of warning to lenders though: since rental income is frequently used to pay expenses on the property, such as the property manager, maintenance, taxes, and other expenses, the lender needs to ensure they do not unintentionally hurt the value of the property by letting these important expenses fall behind. This may hurt the lender’s investment as well, as the property value could suffer, liens could be placed on the property, or the property may fall into disrepair if not properly maintained. It is also important for lenders to be aware of the statutes surrounding the payment of these expenses when an AOR is being used, as some state’s statutes require the lender to pay certain property expenses out of the collected rents if requested by the borrower.

In addition to being shorter and cheaper than foreclosure, AORs can be much easier to enforce. In California, the enforcement of an AOR is governed by California Civil Code §2938. This statute specifies enforcement methods lenders can use and restrictions on use of these funds by the lender, among other things. Under CA Civil Code §2938(c), there are 4 ways to enforce an AOR:

  • The appointment of a receiver;
  • Obtaining possession of the rents, issues, profits;
  • Delivery to tenant of a written demand for turnover of rents, issues, and profits in the correct form; or
  • Delivery to assignor of a written demand for the rents, issues, or profits.

One or more of these methods can be used to enforce an AOR. First, a receiver can be appointed by the court, and granted specific powers related to the AOR such as managing the property and collecting rents. They can have additional powers though; it just depends on what the court orders. This is not the simplest or easiest option as it requires court involvement, but this is used to enforce an AOR, especially when borrowers or tenants are uncooperative. Next is obtaining possession of the rents, issues, profits, which is exactly as it seems; lenders can simply obtain actual possession of these and apply the funds to the loan under their AOR.

The third and fourth options each require delivery of a written demand to certain parties, directing them to pay rent to the lender instead of to the landlord. Once the demand is made, the tenant pays their rent directly to the lender, who then applies the funds to the defaulted loan. These are both great pre-litigation options, with advantages over the first two enforcement methods since actual possession can be difficult to obtain and courts move slowly with high costs to litigate. The written demands require a specific form to follow called the “Demand To Pay Rent to Party Other Than Landlord”, as found at CA Civil Code §2938(k). There are other notice requirements to be followed here, so it is essential to consult with an experienced attorney if you are considering either of these options. California Civil Code §2938 specifically provides that none of the four enforcement methods violate California’s One Action Rule nor the Anti-Deficiency Rule, so lenders can confidently enforce their AORs using the above methods with peace of mind that they are not violating other California laws.

Whether you are looking to originate a new loan, or you are facing a default by your borrower, understanding what an Assignment of Rents is and how it operates can be extremely beneficial. Enforcing an AOR can be an easier option than foreclosure and can help promote a good relationship with your borrower when handled correctly. If you have any questions about AORs, or need further details on how to enforce them, Geraci is here to help.

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Nikolai Bukharin Archive

The Case of Bukharin

Recorded: March 5 - March 12 1938; Source: “The Case of the Anti-Soviet Block of Rights and Trotskyites”, Red Star Press, 1973, page 369-439, 767-779; First published in English: “The Case of the Anti-Soviet Block of Rights and Trotskyites”, People’s Commisariat of Justice of the U.S.S.R., 1938; Online Version: Marxists Internet Archive (marxists.org) 2001; Transcription/Markup: Mathias Bismo .

Interrogation of accused Bukharin, Evening Session, March 5, 1938.

Interrogation of accused Bukharin, Morning Session, March 7, 1938.

Last Plea, Evening Session, March 12, 1938.

He was found guilty of: “being irreconcilable enemies of the Soviet power, on instructions of the intellkigence services of foreign states hostile to the U.S.S.R., in (they) 1932-33 organized a conspiratorical group known as the ‘bloc of Rights and Trotskyites’, which united underground anti-Soviet groups of Trotskyites, Rights, Zinovievites, Mensheviks, Socialist-Revolutionaries and bourgeois-nationalists of the Ukraine, Byelorussia, Georgia, Armenia, Azerbaijan and the Central Asiatic Republics.”

The Soviet Court also found that: “On the instructions of enemy of the people L. Trotsky, and of leading participants in the ‘bloc of Rights and Trotskyites’ - Bukharin, Ryjkov and Yagoda - (...) with obviously treasonable purposes, entered into direct relations with representatives of foreign states hostile to the U.S.S.R. and negotiated with them regarding the forms of assistance to be given to the aggressors in event of their attack upon the Soviet Union (organization of terrorist, diversive and wrecking acts and espionage). The leaders of ‘the block of Rights and Trotskyites,’ Rykov, Bukharin and Yagoda among their number, were not only fully informed of the espionage activities of their accomplies, but in every way encouraged the extension of espionage connections, and themselves gave instructions to the participants in ‘the bloc of Rights and Trotskyites’ when they conducted their treasonable negotiations with representatives of foreign states, thus expediting preparations for foreign intervention.”

In 1961, Bukharin’s wife, Anna Larina, was finally able to deliver Bukharin’s “last testament,” completely repudiating these “confessions,” to a Party control commission investigating the case for his rehabilitation. Looking back on his testimony and trial, Anna Larina said:

“But the most amazing thing is that, despite everything, the time of shining hopes had not passed for him. He would pay for these hopes with his head. Moreover, one reason for his preposterous confessions in the dock – incomplete, but sufficiently egregious confessions � was precisely this: he still hoped that the idea to which he had dedicated his life would triumph.” [Anna Larina, This I Cannot Forget , Pandora, 1994]

Moscow Muled

Moscow Muled

How to clean and care for copper mugs: the definitive guide.

How to Clean and Care for Copper Mugs: The Definitive Guide

Oct 15, 2019

In this post, we reveal the complete guide to cleaning and caring for your copper mugs. From how to maximize the lifespan of your mugs to how to ensure that they maintain that brilliant copper shine, we have you covered. Let's get started!

Introduction

Since the creation of the Moscow Mule in the 1940's, copper mugs have never been more popular than they are today. This refreshing cocktail made of lime juice, vodka, and ginger beer is traditionally served over ice in an iconic copper mule mug. No matter what beverage you choose to serve in it, the appeal of the copper mug is hard to deny. As bars, restaurants and at-home use of copper mugs continues to grow in popularity, it is important to know how to properly care for and clean copper. This article will tell you everything you need to know, including:

Why is Cleaning Copper Mugs Important?

Why does copper tarnish.

  • How Do you Clean Copper Mugs?
  • 5 Easy & Natural Ways to Remove Copper Tarnish
  • Is it Safe to Drink from Copper Mugs?

Are Copper Mugs Dishwasher Safe?

  • Lined Versus Unlined Copper Mugs
  • The Benefits of Using Copper Mugs
  • Essential Tips to Care for your Copper Mugs

person wearing blue clothes carrying two Moscow Muled copper mugs in each hand

Like any drinking vessel, copper cups, mugs, water bottles and tumblers need to be washed after every use. Copper does require specific care and maintenance, however it's quite simple and easy to learn and do.

First and foremost, copper mugs should be cleaned properly for health and safety reasons. Whether at a restaurant or at home, you don't want anyone getting sick from drinking from an unwashed cup.

There is something compelling about the warm glow of polished copper. A huge part of the appeal and popularity of cocktails like the Moscow Mule is the unique aesthetic of the copper mug. This metal will tarnish naturally with time and use, so cleaning it properly can be essential to keeping it shiny, and fully experiencing the many benefits of drinking from a copper mug.

upper half of Statue of Liberty against sky background

Like iron developing rust, copper will naturally tarnish  over time with exposure to humidity and other elements found in the air. Copper's blue-green tarnish, known as patina, can be either useful or annoying, depending on its intended use.

The patina actually serves as a protective layer for the copper beneath, and can be useful in outdoor applications such as roofing or pipes.  However, when it comes to mugs or cups, we want the copper to shine as warmly as possible, so it is essential to know about preventative care and maintenance.

Don't worry, it's super easy to do, and incredibly satisfying to restore and polish your tarnished copper mugs.

How Do You Clean Copper Mugs?

Cleaning copper mugs is like cleaning most anything, except that it MUST be washed by hand. In other words, never put them in the dishwasher, ever. Take 30 seconds to gently wash them by hand with a soft sponge, soap and warm water.

For most people at home, this shouldn't be a problem. But some high-volume bars or restaurants might not be able to dedicate the time needed for proper care. This is one reason a business may prefer a tin-lined  or lacquered copper cup that may need less polishing, although they too should still be washed by hand.

The most important part of cleaning your copper mug is drying it!

Residual water in the slightest amount can lead to tarnishing, so experts highly recommend you dry your copper mug twice, with two different soft towels or cloths until all moisture is removed.  This extra step only takes a few moments, and will go a long way towards the durability and cleanliness of your copper mule mugs.

If you want your copper mug to look nice, dry it twice!

5 Easy and Natural Ways to Remove Copper Tarnish

Owning a copper mug comes with the added responsibility of some occasional, simple maintenance. When your favorite mug starts to turn green, here are some easy solutions to restore its natural shine!

Lemon or Limes and Salt

four slices of lemon lined up and sprinkled with salts

This simple method is quick and easy, and ideal for bars or restaurants that may have an abundance of lemons on hand. Simply pour some table or sea salt onto a dish, and cut a fresh lemon or lime into 1/4th slices. Dip the fruit slice into the salt, and scrub the copper mug with slow, methodical circles inside and out. The change should be almost instantaneous, and when the tarnish has been removed, wash under warm or cool water, and dry thoroughly.

Vinegar and Salt

Mix one cup of vinegar, one tablespoon of salt, and five cups of water. Pour the solution into a saucepan, place your mug into the saucepan, and bring it to a boil. After a few minutes, the tarnish will have disappeared, and you can remove the mug with tongs, rinse it in cold water, and dry thoroughly with two soft dish towels.

Vinegar and Baking Soda

Create a paste with three parts baking soda, and one part vinegar. Use a sponge to apply it to the mug with small circular motions and let it sit for about 10 minutes in order for the magic to happen. After that, simply rinse and dry until all moisture has been removed.

Harness the power of tomatoes to clean your tarnished copper mug! Apply the ketchup using a soft sponge or toothbrush, always rubbing in small circles. Then let it stand for 30 minutes. Remove the ketchup in the same way you applied it (a specially designated tarnish-toothbrush can be a highly effective tool for getting into those hard to reach places). Finally, rinse with water, and dry thoroughly with two soft towels.

Tamarind Paste

Tamarind is a tropical fruit, popular in Caribbean, African and Indian cuisine. It contains tartaric acid, which helps remove tarnish from brass and copper. If this is something you have access to, simply add water to create a paste, and rub it onto the copper with a soft sponge or cloth.  After a few minutes, rinse off the paste, and dry completely.

Metal Polish

Although the natural methods listed above are all equally effective, inexpensive and safe, another option is to use a tarnish remover or metal polish. Popular brands like Brasso are great for polishing many different kinds of metals, but the main ingredients may be less than desirable (rubbing alcohol, ammonia, mineral spirits and silica powder). Chances are you can easily find most of the ingredients for cleaning copper mugs in your pantry, and can avoid buying a product full of harsh chemicals.

Is It Safe To Drink From Copper Mugs?

Yes, it is safe to drink from copper mugs , despite click-bait headlines, myths and legislation that may suggest otherwise. True, when using 100% pure copper mugs it is possible that trace amounts of copper could be ingested. However, this can be mitigated by using stainless-steel plated copper mugs.

Copper is an essential part of human biology, and is necessary for regulating metabolic systems and vital organs. Copper deficiency can lead to arthritis, osteoporosis, cardiovascular diseases and colon cancer.

Not only do our bodies need copper, we also have systems in place to naturally deal with any excess copper. Verified scientific studies have shown copper can do impressive things.

  • Copper and Iron work together to form red blood cells.
  • Copper helps maintain collagen, and along with other antioxidants, can reduce signs of aging.
  • Copper helps absorb excess iron in the liver.
  • Copper improves brain and nerve cell synaptic responses.
  • Copper aids in digestion and helps with ulcers and inflammation.

Copper toxicity is quite rare and, according to the World Health Organization , "There is a greater risk of health effects from a deficiency of copper intake than excessive copper intake."

The FDA guidelines do not recommend using copper for any food or beverage purposes, solely because of the extra care needed to maintain it, and applies exclusively to commercial operations, with varying local and state regulations.

This is meant to protect consumers from improperly cleaned or exposed copper mugs and cookware in bars and restaurants, and does not apply to home use. The FDA suggests the public learn about proper care and maintenance before using copper mugs, but scientists have debunked the claim that a Moscow Mule can give you copper poisoning.

When using 100% pure copper mugs and a liquid with a pH below 6.0 (like lime juice), and that liquid remains in the mug for an extended period of time, there is a chance you could consume amounts of copper. This is the reason why it is generally a good idea to use copper mugs lined with stainless-steel .

No, never! All copper cookware, utensils or mugs should be washed by hand, no exceptions. Dishwashers typically use harsh detergent, powerful water sprays and high heat that can seriously harm your copper mug both inside and out.

Dishwashers can lead to dents, tarnishing, and flaking or cracking. So take 30 seconds to do right by your copper mugs, and wash and dry them by hand!

Lines Versus Unlined Copper Mugs

When purchasing a copper mug, there are three basic options - 100% copper, tin-lined, and copper plated.

Copper is a great thermal conductor, and will keep your drink colder for longer (or hotter for longer, depending on the drinks). This is a big part of what makes the Moscow Mule an attractive summer beverage, and why copper mugs are great for cocktails in general.

Lined copper mugs  (usually with zinc, stainless-steel  or tin) can be a great choice. The double lining improves their durability, and can give them a great look. Unlike pure copper, lined copper mugs also offer additional health benefits by avoiding reactions between acids in your drink and pure copper.

Both lined and unlined copper mugs must be washed by hand and both will develop a patina over time. Lined mugs might take slightly less time to polish, because you only need worry about the outside. However, now that you know how to clean tarnished copper mugs, it's nothing you can't handle.

Essential Tips To Care For Your Copper Mugs

Copper mugs are stylish and good for your health. They keep your cold drinks chilled, and your hot drinks steaming. Copper mugs have been used for thousands of years for water purification and health benefits, and have made a triumphant rise in popularity since the invention of the Moscow Mule in the 1940's.

Whatever you choose to put in your copper mug, remember these three simple tips:

  • When serving drinks, don't let them sit for more than 4 hours. Drink up!
  • After each use, take the time to hand-wash your copper mugs with soap and water, and use TWO TOWELS to dry them thoroughly.
  • When your copper mug begins to tarnish, use one of the five easy and natural ways listed above to polish it to perfection.

Thank you for taking the time to become an expert on using, cleaning and caring for copper mugs. Cheers!

Did You Enjoy This Article?

Thank you for reading! If you enjoyed this article, you might also like the following articles:  Why You Should Only Use Moscow Mule Copper Mugs With Stainless Steel Lining and  Which Moscow Mule Copper Mugs Are Best?

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IMAGES

  1. Detailed Assignment of Leases Rents Income and Cash Collateral

    collateral assignment of leases and rents

  2. Fillable Online Collateral Assignment of Leases and Rents

    collateral assignment of leases and rents

  3. 6 Collateral Assignment of Leases and Rents.docx

    collateral assignment of leases and rents

  4. Fillable Online Collateral assignment of leases and rents

    collateral assignment of leases and rents

  5. Assignment Of Lease Template

    collateral assignment of leases and rents

  6. Fillable Online Collateral Assignment of Leases and Rents

    collateral assignment of leases and rents

VIDEO

  1. WHY RENT AGREEMENT IS GENERALLY FOR 11 MONTHS?

  2. Video 2 Collateral Assignment Opportunities

  3. Canada's Priciest Rents: Where Leases Soar

  4. LAND LAW ASSIGNMENT

  5. The Rent Is Too Damn High

  6. Sell the SMART way

COMMENTS

  1. Collateral Assignment Of Lease: Definition & Sample

    A collateral assignment of lease is a legal contract that transfers the rights to rental payments from the asset's owner to a lender to secure funding. In this contract, the lease's rentals are like a loan from the funder to the lessor and the lease acts as security.

  2. PDF Assignments and Collateral Assignments Of Commercial Leases

    An assignment of lease agreement is a contract to effectuate a transfer to an assignee of title and rights to certain real property held by a les-see or tenant pursuant to a lease. There are varying reasons why a tenant may want to assign the lease.

  3. Assignment of Leases and Rents: Absolutely Collateral

    Case Law New York case law surrounding the treatment of assignments of leases and rents, whether by "absolute" or "collateral" assignment nominally suggests that judges will give effect to ...

  4. Assignment Of Leases And Rents: Definition & Sample

    The assignment of leases and rents, also known as the assignment of leases rents and profits, is a legal document that gives a mortgage lender right to any future profits that may come from leases and rents when a property owner defaults on their loan. This document is usually attached to a mortgage loan agreement.

  5. Collateral Assignment of Leases and Rents

    Define Collateral Assignment of Leases and Rents. means a Collateral Assignment of Leases and Rents for each Property or for multiple Properties located within the same county or parish, dated as of the Closing Date (or, in connection with a Property which is a Substitute Property, dated as of the date of the substitution), executed and delivere...

  6. Assignment of Leases and Rents: Absolutely Collateral

    One mechanism employed by commercial mortgage lenders to secure their interest in the rental stream is to require in the mortgage document an assignment of leases and rents pursuant to which...

  7. Collateral Assignment of Leases and Rents definition

    Define Collateral Assignment starting Lease and Rents. is a Collateral Duty of Contracts and Rents for each Ownership other for multiple Properties located during the same county or parishes, dateline as of the Closing Date (or, in connection with a Eigentum which is a Substitute Property, dated as of the date a who substitution), executed and delivered by Borrower, constituting an assignment ...

  8. Assignment of Leases and Rents definition

    The Assignment of Leases and Rents, filed on the same day the property owner took out a second mortgage, functions as collateral (it guarantees that the property owner will pay back the loan on time). In this case, it entitles the lender to $398,000 from leases and rents in case the property owner defaults on the mortgage.

  9. Perfection of Security Interests in Rents

    The draft act establishes that a lender's security interest in rents shall be perfected and effective against third parties upon recordation of an assignment (either as part of a security ...

  10. Assignment of Leases and Rents (Pro-Lender)

    An assignment used in commercial real estate loan transactions in which the borrower grants the lender a present assignment of a property's leases and rents. This Standard Document is jurisdiction-neutral and must be customized to be recordable and enforceable in the governing jurisdiction. This Standard Document compares absolute and collateral lease assignments and discusses such issues as ...

  11. RS 9:4401

    PLEDGE OR ASSIGNMENT OF LEASES AND RENTS §4401. Conditional or collateral assignment of leases or rents A. Any obligation may be secured by an assignment by a lessor or sublessor of leases or rents, or both leases and rents, pertaining to immovable property.

  12. Absolute Assignment of Rents vs. Assignment as Collateral

    In a 1990 published decision, the United States Bankruptcy Court in Maryland held that an assignment of rents provision only granted the lender a lien in the rents and thus the borrower/debtor could use the rents as cash collateral if adequate protection is provided.

  13. PDF Real Estate Collateral

    Collateral Assignment of Leases and Rents UCC-1 for Use in Connection with Form 15.1 Tenant Estoppel Letter Subordination, Non-Disturbance, and Attornment Agreement Construction Loan Agreement Collateral Assignment of Contracts, Plans, Licenses, Permits, and Approvals UCC-1 for Use in Connection with Form 15.6 Engineer's Certification Contractor...

  14. 5 Elements to Include in Collateral Assignment of Lease/Landlord's

    Landlords of commercial properties are often asked to sign a collateral assignment of lease and a waiver of the landlord's lien on a tenant's trade fixtures and equipment in favor of the tenant's equipment lender or franchisor. The usual form presented permits the lender/franchisor to enter the leased premises in the event of a tenant […]

  15. Mortgage, Assignment of Leases and Rents, Security Agreement ...

    Toolkit A short form mortgage useful for commercial loans secured primarily by real estate. This Standard Document assumes an accompanying loan agreement contains the business terms, including provisions setting out the events of default and lender's rights and remedies.

  16. PDF Collateral Assignment of Leases and Rents

    COLLATERAL ASSIGNMENT OF LEASES AND RENTS This Assignment made this day of , , by and between , with an office at ("Assignor") and , with an office at ("Assignee") W I T N E S S E T H : Assignor is the fee owner of premises known as , designated tax block , lot no. ("Premises"), and has agreed to make a mortgage note to Assignee in ...

  17. Assignment Of Rents

    An Assignment of Rents ("AOR") is used to grant the lender on a transaction a security interest in existing and future leases, rents, issues, or profits generated by the secured property, including cash proceeds, in the event a borrower defaults on their loan. The lender can use the AOR to step in and directly collect rental payments made ...

  18. Collateral Assignment of Rents Preparation

    A Collateral Assignment of Rents agreement is used when a landlord seeks to place a mortgage on a property subject to a pre-existing lease. In such situations, a lender will typically ask that the lease payments serve as collateral, in addition to the property itself.

  19. PDF General Assignment Of Leases And Rents (11435-2012/05)

    2. Assignment. The Assignor hereby assigns, as security, to the Assignee, its successors and assigns, and grants a security interest in (as continuing collateral security for the Obligations) all of the Assignor's right, title, benefit and interest in and to the Leases (the "Assigned Leases") and the Rents (the "Assigned Rents"), with ...

  20. Civil Code Draft Amendments. Land Plots for Construction Under Leases

    Alexey Konevsky Head of Real Estate and Construction Practice Pepeliaev Group Under the proposed amendments to the Civil Code, a rather significant number of limited real rights are introduced, an ...

  21. The Case of Bukharin

    The case of Nikolai Bukharin was set during the last of the Moscow Trials. On March 13th 1938 he was, along with Alexei Rykov, Genrikh Yagoda, Nikolai Krestinsky, Arkady Rosengoltz, Vladimir Ivanov, Mikhail Chernov, Grigori Grinko, Isaac Zelensky, Akmal Ikramov, Faizulla Khodjayev, Vasili Sharangovich, Prokopy Zubarev, Pavel Bulanov, Lev Levin, Ignaty Kazakov, Veyamin Maximov-Dikovsky and ...

  22. Russian Trade Ministry Seeks to Ban Dollar Leases

    Russia's Trade and Industry Ministry has prepared legislation that would ban the use of foreign currencies in commercial lease deals, the Vedomosti business daily reported last week.

  23. How to Clean and Care for Copper Mugs: The Definitive Guide

    Vinegar and Baking Soda. Create a paste with three parts baking soda, and one part vinegar. Use a sponge to apply it to the mug with small circular motions and let it sit for about 10 minutes in order for the magic to happen. After that, simply rinse and dry until all moisture has been removed.