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Commercial Tenants May Be Required to Pay Rent to Bank when Landlord in Default

Section 2938 of the California Civil Code requires commercial tenants to pay their rent to the creditor of their landlord when a landlord defaults on its obligations to its creditor under certain circumstances. The general principle is that if a landlord defaults under an obligation to the creditor, the creditor can compel the tenant to make rental payments directly to it.
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