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California Civil Code 2938

Default Law Requires Commercial Tenants to Pay Bank, Not Landlord

By Blog, Real Estate Law

It’s no secret that, these days, many commercial property owners are having trouble meeting their mortgage payments. If you are a tenant of such an owner in California, you should know about section 2938 of the California Civil Code (“Section 2938”). Section 2938 requires, under certain circumstances, a commercial tenant to pay rent to its landlord’s creditor rather than its landlord.

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