Two financial institutions unknowingly advanced loans in exchange for an assignment of rents on the same apartment building.The tenants were served with notice of the assignment by one financial institution immediately,the other served notice one week later.With respect to the payment of the rents under the assignments,what advice would a lawyer give to the tenants?
A) Payment of the rents by the tenants is payable to the landlord.
B) Priority ranking is delegated in the order notice was effected.
C) Priority ranking is delegated to the first party to advance the loan.
D) Payment of rents must be made to the assignor of the rents.

Question

Quizplus · Accepted Answer

Priority in the assignment of rents is typically determined by the order in which notice is served to the tenants. The financial institution that first notifies the tenants of the assignment generally has the superior claim to the rents.

Two Financial Institutions Unknowingly Advanced Loans in Exchange for an Assignment