Assignment of Rents agreement question

[Chris Adams]

Closing a loan in a few days and as usual there is a Assignment of rents agreement. But this sentence, which I see in every assignment of rents agreement, pisses me off.

LENDER'S RIGHT TO RECEIVE AND COLLECT RENTS, Lender shall have the right at any time, even though no default shall have occurred under this Assignment, to collect and receive Rents. For this purpose, Lender is hereby given and granted the following rights, powers and authority:

So as my non lawyer brain reads this, we can decide to take your rents at any time we feel like it. I spoke with a banker buddy who said there are state laws restricting this. But I'd like to hear from the BP community on this one.

I will gladly post the entire assignment if needed

[Ed Wood]

It's if you default they can collect the rents. Lender doesn't want you not paying them and you pocketing the rents. If this is a conventional loan it's a standard rider. If you don't sign it lender won't fund the loan... then you'll go to another lender and they'll have the same rider...