Opinion ID: 2735193
Heading Depth: 2
Heading Rank: 1

Heading: The Mortgage.

Text: Cadence concedes in paragraph 9 of its Complaint that the December 31, 2001, Future Advance Mortgage, Assignment of Rents and Leases and Security Agreement (the 'Mortgage') included an absolute and present assignment and transfer of all rents and leases, including future leases (such as the [lease]):5 The operative provisions provide as follows: '2.01 Assignment. Borrower, in consideration of Lender's making the Loan as aforesaid and for other good and valuable consideration, ... does hereby sell, assign and transfer unto the Lender all leases, subleases and lease guaranties of or relating to all or part of the Mortgaged Property, whether now existing or hereinafter created or arising, including without limitation those certain leases, if any, specifically described on an exhibit to this Mortgage.... '.... '2.04 Present Assignment. It is the intention of the parties that this assignment of rents and leases shall be a present assignment.... '.... '2.06 Instruction to Lessees. The Borrower does further specifically authorize and instruct each and every present and future lessee, tenant, sublessee or subtenant of the whole or any part of the Mortgaged Property to pay all unpaid rental agreed upon in any lease, sublease or tenancy to the Lender upon 15 1111422; 1111449; 1111526; 1121455; 1130054 receipt of demand from said Lender to pay the same. '2.07. Default (Assignment). Upon the occurrence of any Event of Default, as described in Paragraph 4.01 of this Mortgage, then, in addition to the right to demand and collect directly from tenants rents accruing from leases of the Mortgaged Property, Lender shall have all rights and remedies set forth in Article IV or elsewhere in this Mortgage.... '.... '4.03 Right of Lender to Enter and Take Possession. '.... '(b) (iii) [The Lender has the right to] manage and operate the Mortgaged Property (or any portion thereof selected by Lender) and exercise all the rights and powers of the Borrower in its name or otherwise, with respect to the same, including legal actions for the recovery of rent, legal dispossessory actions against tenants holding over and legal actions in distress of rent, and with full power and authority to cancel or terminate any lease or sublease for any cause or on any ground which would entitle the Borrower to cancel the same, and to elect to disaffirm any lease or sublease made subsequent to this Mortgage or subordinated to the lien hereof....' (Mortgage, Cadence Complaint, Exhibit B, pp. 8-11.) Thus, the provisions of the Mortgage grant the lender ... a present Assignment of rights under every present and future lease, which must 16 1111422; 1111449; 1111526; 1121455; 1130054 necessarily include the [lease]. Importantly, the lender's rights under the [lease] are not contingent upon a default; rather, the Mortgage evidences a present assignment of rights whereby the lender has standing immediately as an assignee of any lease. The Mortgage provides that any assignee of the mortgage (such as Cadence) is subject to the Mortgage and related documents, including the [lease]:6 '5.01 Binding Effect. Wherever in this Mortgage one of the parties hereto is named or referred to, the heirs, administrators, executors, successors, assigns, distributes [sic], and legal and personal representatives of such party shall be included, and all covenants and agreements contained in this Mortgage by or on behalf of the Borrower or by or on behalf of Lender shall bind and inure to the benefit of their respective heirs, administrators, executors, successors, assigns, distributes [sic], and legal and personal representatives, whether so expressed or not.' (Mortgage, Cadence Complaint, Exhibit B, p. 14.) As such, Cadence is an assignee of the Mortgage and is likewise subject to the [lease].