Back letter definition

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Back letters to commercial leases in Scotland

Back letters to commercial leases in Scotland What are back letters? A back letter is a personal contractual arrangement between the granter and the grantee, ie in the context of a commercial lease, between the landlord and tenant. The terms of back letters are usually intended to be: • legally binding • personal to the parties to the letter or binding on successors in title When are back letters used? A back letter softens the terms of a lease. They are used: • to give the initial tenant a ‘sweetener’ or inducement to help the deal happen. In such cases, the landlord will require that any concession that is not to be available to the tenant’s assignees is contained only in a direct back letter in favour of the initial tenant • to make arrangements and grant concessions (eg in relation to the permitted use, the standards of repair or rental concessions), or • to avoid ambiguity, for example, on assignment or rent review In practice, the need for a back letter often becomes clear during the negotiation of the detailed terms of the lease. Where this is the case, and the lease is to be completed in accordance with an agreement for lease, the parties should remember to include a clause in the agreement for lease which requires that execution of the lease will trigger simultaneous execution of the back letter. Where back letters are used

Rent and rent review in commercial leases in Scotland

Rent and rent review in commercial leases in Scotland This Practice Note sets out the law on rent and rent review provisions in commercial leases in Scotland. For contentious aspects of rent and rent review see Practice Notes: Recovering rent, arrears and rates considerations in Scotland and Rent and rent review in commercial leases in Scotland. Rent One of the essential common law requirements for a contract of lease to exist is the payment of rent even if this is only a nominal amount. Rent is usually payable quarterly in advance on the Scottish quarter days but it is not uncommon for some leases where the landlord is an English property company or pension fund, to provide for rent to be paid on the English quarter days (see below) in order to create consistency across the landlord's property portfolio. Following the recession in 2008, it has become more common for retail tenants to ask their landlords for rent to be paid monthly in advance and many landlords are prepared to agree to this. Such agreements are usually personal to the original tenant and documented by way of a back letter, see Practice Note: Back letters to commercial leases in Scotland. The new Scottish quarter days are: • Candlemas, 28 February • Whitsunday, 28 May • Lammas, 28 August • Martinmas, 28 November Some leases still refer to the ‘old’ Scottish quarter days which are: • Candlemas, 2

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Report on title—occupational lease report—Scotland

Report on title—occupational lease report—Scotland Executive summary of material issues We draw your attention to the following: • [insert material issue or area of concern]; • [insert material issue or area of concern] 1 Particulars 1.1 Date and parties Lease dated [insert date of lease] and made between [insert details of the original parties to the lease] [(the ‘Lease’). OR as varied by [insert document name] (the ‘Lease’)[. The deed varied the Lease by: [insert details of provisions varied]] ]. 1.2 Back letters [[None disclosed.] OR The Tenant has the benefit of a back letter dated [insert date and details of the terms of the side letter].] [You will be bound by the terms of the back letter. OR The back letter is personal to the Seller and you will not be bound by it following completion (unless you continue to act in accordance with it or agree to provide a new back letter).] [The side letter is personal to the current Tenant. OR The back letter is for the benefit of the current Tenant and its successors in title.] 1.3 Tenant The current tenant is: [insert name] [of [insert address] OR incorporated in Scotland with company registration number [insert company registration number] whose registered office is at [insert address]]. For the purposes of this report, the term ‘Tenant’ includes successors in title. 1.4 Landlord The current landlord is [the Seller. OR [insert details of current landlord and any advice.]] For the purposes of this

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OFAC fines French bank $US 8.6m for alleged sanctions lapses

Law360: A French bank will pay $US 8.6m to settle claims that it processed more than $US 2bn in transactions through US banks on behalf of sanctioned Syrian entities, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said on 4 January 2021.