Assignment of Rents and Leases
The document must have the following information:
- Name of the Borrower, Lessor, Assignor (KRS 382.430, KRS 382.200)
- Name and address of the Lender, Assignee (KRS 382.290(2), KRS 382.335(2))
- Source of Title (KRS 382.110)
- Legal description (Common Law and OAG 81-100)
- Maturity date (OAG 80-3 & KRS 382.330)
- Preparation Statement (KRS 382.335)
The clerk shall request a return mail address (KRS 382.240)
The borrower must sign the document, and the signature must be acknowledged.
This document is filed when a borrower uses fees collected under rental or lease agreements as additional security for a mortgage. When it is filed simultaneously with a mortgage, the mortgage should be timed in first. (KRS 286.5.441)
Statutes covering Assignments of Rents/Leases See KRS 286.5.441
*The legal process fee of $4.00 is included in this document due to the wording in OAG 80-3. "The instrument involved here is a unique creature unto itself, but it contains the characteristics of both a deed and a mortgage. It is a straightforward transfer of an interest in realty for a term and thus is like a deed. Yet it also stands as a security for an obligation..." Both deed and mortgage require a legal process fee.
OAG 80-3 indicates this document may be filed in the deed, mortgage or miscellaneous book. It is left to the discretion of the clerk. However, the OAG recommends the Mortgage book.
Assignment of rents and/or leases may have multiple references in one document. These extra references should be indexed as you would index an extra reference in a deed that has multiple tracts of land.