What can banks collect if commercial landlords default on their agreements?

When commercial landlords default on their agreements, banks, as lenders, often have the right to collect assignments of rents and leases. This legal mechanism allows the lender to step into the shoes of the landlord and collect rental payments directly from tenants. It serves as a form of security for the lender to recoup potential losses from the default.

By obtaining assignments of rents and leases prior to a default, lenders can ensure a steady stream of income, even if the property owner is unable to meet their obligations. This is crucial in protecting their investment and managing their risk exposure during the default period.

The other choices do not offer the same level of direct benefit to the lender in the event of a landlord's default. While property taxes could theoretically be relevant to a landlord's financial obligations, they do not represent the collection rights of a lender. Non-freehold estates pertain to property interests and leasing agreements rather than lender rights. Fixture filings refer to a legal claim over certain physical components of a property but do not provide a method for collecting rent in the case of default.