By Brad MacLiver
Authorship and profile at Google
A provision of many CT pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements permits the lender to accelerate their payments contingent on an event occurring. These events include but are not limited to: lack of payment from the borrower, a failure to keep the property adequately insured, failure to pay tax assessments, failure to maintain the property, and the selling of the property/asset.
Lenders look at the acceleration clause as an important tool in both their business loan and commercial lease programs. Loan and lease documents may not specifically address the foreclosure of a property, or repossession of an asset, but this is where the acceleration clause comes into effect. Without the clause the lender would only be able to foreclose on one missed payment at a time. With the acceleration clause, despite whatever event kicks the clause into gear, the lender can demand immediate and full payment of all remaining balances and fees.
TheConnecticut
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but the pharmacy owner inConnecticut
2. If a pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Connecticut Pharmacy owners should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners should help the process by assisting the landlord re-lease the property. However, please note, should the CT pharmacy be in the process of being sold and the files and inventory moved to a competitor’s location, the pharmacy buyer will require restrictions in the Purchase and Sale Agreement that the new tenant cannot be another pharmacy.
5. Lenders prefer not to have to go through the foreclosure process, so if your pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. SomeConnecticut
When considering financing a pharmacy for acquisition, or expansion, due diligence and understanding of all aspects of the transaction should be considered. Using the services of a pharmacy industry expert to guide a pharmacy owner through the maze of details will benefit the pharmacy owner inConnecticut
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Authorship and profile at Google
A provision of many CT pharmacy business loans and commercial leases is an acceleration clause. The acceleration clause in the loan/lease agreements permits the lender to accelerate their payments contingent on an event occurring. These events include but are not limited to: lack of payment from the borrower, a failure to keep the property adequately insured, failure to pay tax assessments, failure to maintain the property, and the selling of the property/asset.
Lenders look at the acceleration clause as an important tool in both their business loan and commercial lease programs. Loan and lease documents may not specifically address the foreclosure of a property, or repossession of an asset, but this is where the acceleration clause comes into effect. Without the clause the lender would only be able to foreclose on one missed payment at a time. With the acceleration clause, despite whatever event kicks the clause into gear, the lender can demand immediate and full payment of all remaining balances and fees.
The
Tips:
1. If a pharmacy’s slowing cash flow is going to cause a business loan default, but the pharmacy owner in
2. If a pharmacy can catch up on their payments they can reinstate the business loan before the acceleration starts.
3. States have different rules requiring notification of an acceleration clause being exercised. Connecticut Pharmacy owners should understand the laws in the state where they operate. Lack of knowledge is not an excuse.
4. When an acceleration clause is exercised on a commercial lease, there is the possibility the landlord cannot collect rent from both the defaulting tenant and a new tenant at the same time. To save themselves some money, pharmacy owners should help the process by assisting the landlord re-lease the property. However, please note, should the CT pharmacy be in the process of being sold and the files and inventory moved to a competitor’s location, the pharmacy buyer will require restrictions in the Purchase and Sale Agreement that the new tenant cannot be another pharmacy.
5. Lenders prefer not to have to go through the foreclosure process, so if your pharmacy is headed in that direction start talking with the lender about finding a solution. Communication with the lender is a good thing.
6. Some
When considering financing a pharmacy for acquisition, or expansion, due diligence and understanding of all aspects of the transaction should be considered. Using the services of a pharmacy industry expert to guide a pharmacy owner through the maze of details will benefit the pharmacy owner in
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