On September 8, 2009, New York Gov. David Paterson signed into law amendments to the state's Prompt Payment Act (the "Act") intended to create broader enforcement mechanisms for the benefit of contractors, subcontractors, suppliers and laborers.
Many commercial tenants, hit hard by the economic downturn, especially those locked into long-term leases, are seeking to sublet a portion of their unused rented space to defray rent and operating costs.
Following and sometimes in anticipation of a default by a borrower, the mortgage lender must decide whether to proceed to enforce its rights under its security as soon as its right to do so has crystallized, or whether to work with the borrower to attempt to resolve the pending or actual crisis in their relationship.
As a result of financial challenges facing a number of American landlords including, most notably, General Growth Properties (the owner of over 220 malls across the United States), much has been written about the impact of landlord bankruptcy on the rights of tenants.