When negotiating an offer to lease, more parties may be involved than the tenant and landlord. What about the tenant’s lender who often requires a security interest in the tenant’s assets and business as part of the tenant’s credit facility? This security interest may be a leasehold mortgage, in which case the tenant’s lender will likely require some form of landlord approval and recognition. It may also be a general security agreement which would likely include a landlord’s waiver of distraint or other subordination regarding the tenant’s inventory, chattels and equipment to protect the lender’s security interest if the tenant is in default. The tenant should raise these requirements early in the negotiations and include specific lender provisions either in the offer or letter of intent to avoid lengthy negotiations at the lease stage. If possible, attach the lender’s form of priority agreement to address issues such as notices, access, interim rights and disposition that may arise if the tenant defaults. By dealing with this at the outset, the tenant will avoid being caught in the middle of protracted and costly negotiations to address the concerns of its lender. Your thoughts?