Bill > H45

This bill adopts the Uniform Assignment of Rents Act, which creates a comprehensive legal framework for the assignment and enforcement of rents from real property. The key provisions are: 1) An enforceable security instrument automatically creates an assignment of rents arising from the real property, and an assignment of rents creates a presently effective security interest in all accrued and unaccrued rents. 2) The security interest in rents is perfected upon recording the assignment document, and a perfected security interest in rents takes priority over most subsequent creditors and purchasers. 3) The assignee can enforce the assignment by appointing a receiver, notifying the assignor to pay over the rents, or directly notifying tenants to pay rents to the assignee. The bill specifies procedures and protections for tenants. 4) The bill also addresses issues around commingling of rent proceeds, priority between competing security interests, and the retroactive application of the new law to existing assignments. Overall, the bill standardizes and clarifies the rules around rent assignments, providing greater certainty and efficiency for real estate financing transactions.

Justice

https://malegislature.gov/Bills/190/H45