Keywords: Indiana Assignment of Leases and Rents, Collateral Security, Commercial Loan, Types Description: An Indiana Assignment of Leases and Rents as Collateral Security for a Commercial Loan is a legal agreement used in commercial real estate financing transactions. This arrangement allows a lender to secure their loan by obtaining rights to the lease payments and rental income generated by a property owned by the borrower. The assignment serves as a form of collateral, providing the lender with an additional layer of protection in case of default or non-payment by the borrower. By obtaining the rights to the rental income, the lender ensures they have a source of repayment in case the borrower is unable to meet their loan obligations. In Indiana, there are different types of Assignment of Leases and Rents that can be used as collateral security for a commercial loan. These types include: 1. Absolute Assignment: This type of assignment transfers the lease and rent payments entirely to the lender. The borrower gives up all rights to the rental income generated by the property, and the lender gains full control over collecting and using those funds to repay the loan. 2. Conditional Assignment: With a conditional assignment, the lender only gains the rights to the lease and rent payments if the borrower defaults on the loan. Until a default occurs, the borrower retains control over the rental income. 3. Assignment of Rents and Profits: This type of assignment allows the lender to collect the rental income from the property but also includes any profits generated by the property, such as income from additional services or facilities. 4. Assignment of Leases: In this type of assignment, the lender obtains the rights to the leases of the property but may not have direct control over the rental income. The borrower continues to collect the rents and pays the lender a specified portion or percentage as required by the loan agreement. It is important to note that Indiana law governs such assignments, and the specific terms and conditions can vary depending on the lender's requirements and the negotiations between both parties. To ensure the validity and enforceability of an Assignment of Leases and Rents as Collateral Security for a Commercial Loan, it is advisable to involve legal professionals experienced in commercial real estate transactions.