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What Landlords Need to Know About Eviction, Lender Talks, and Rent Concessions

Apr 06 2020
Rent was due this week, and many property owners are facing more delinquent renters and requests for rent concessions than they have seen in recent years. That trend isn’t likely to change anytime soon, as stringent governmental measures are taken to slow the spread of COVID-19. At the same time, those measures are also directly and indirectly limiting the ability of commercial and multi-family property owners to enforce rent and other lease clauses. The challenges facing landlords and tenants, practical and legal, vary by jurisdiction and are changing rapidly. Legal remedies remain available but each must be considered carefully.
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COVID-19 Liability Immunity - What You Need to Know Now

Apr 06 2020
The Secretary of the Department of Health and Human Services issued a declaration providing liability immunity to certain individuals and entities against covered claims of loss relating to the manufacture, distribution, administration, or use of medical countermeasures (“Covered Countermeasures”), except for claims involving “willful misconduct.” The COVID-19 Declaration was issued on March 10, 2020 under the authority of the Public Readiness and Emergency Preparedness Act of 2005 (“PREP Act”), codified at 42 U.S.C. §247d-6d, and is retroactively effective beginning February 4, 2020.
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Negotiating Leases and LOIs During the Novel Coronavirus Pandemic, for Office Tenants: Part II - Space Buildout and Improvement Allowances

Apr 06 2020
Office tenants negotiating letters of intent (LOIs) and leases during the novel coronavirus pandemic should pay particular attention to issues of timing for premises that are being improved in any fashion. Buildouts impact rent commencement and delivery, but typical lease terms do not always protect tenants in an equitable manner. With cash flow also being an issue during the pandemic, understanding how improvement allowances work is imperative.
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Adapting: Litigation Dynamics for Businesses Addressing Strained Relationships

Apr 03 2020
Despite court closure orders and other restrictions entered across the country, commercial litigation continues to be filed, with many courts docketing new cases in 2020 on pace with 2019. For businesses considering litigation in uncertain times, there are special considerations, as well as enduring best practices. Preserving vital relationships will be key to mitigating the impact down the road and avoiding irreversible consequences. But filing a lawsuit is sometimes the right move, and businesses should consider consulting with counsel to understand the steps that can be taken to prepare and the dynamics business litigants are likely to face.
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Complying with the Evolving and Conflicting COVID-19 State Closure Landscape; CISA Updates List of Essential Critical Infrastructure Workers

Apr 03 2020
Over the last two weeks, COVID-19 state business closure orders, which we are tracking on our 50-State interactive guide, and their related stay at home orders, have come at a fast and furious pace. From just a handful at the beginning of last week, all but about 11 states have issued some combination of a stay at home, business closure mandate. In addition, the orders begin expiring next week, and with the federal extension of social distancing guidelines until April 30, it is expected that starting next week, states will begin issuing extensions of their closure/stay at home orders and potentially adopt other updates as well.
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Ripley Rand Presents Free Webinar on North Carolina Emergency Management/Public Health Operations During Pandemic

Apr 03 2020
Like many other states, North Carolina is under a stay-at-home order due to the COVID-19 outbreak. Gov. Roy Cooper’s order took effect March 30 and will remain in effect through at least April 29, as state officials look to slow the spread of the disease. Gov. Cooper’s statewide order comes after a number of North Carolina counties and cities – including the state’s biggest metro areas – enacted local stay-at-home orders.
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Latest Guidance on Paycheck Protection Loan Program under the CARES Act

Apr 03 2020
Late in the evening on April 2, the SBA issued an Interim Final Rule on the PPP (the April 2 Rule) and published a revised Application form (Revised Application). While SBA and Treasury continue to say that loans will be provided today, April 3, many banks will need time to digest this additional guidance from SBA and stand up their process for accepting applications and issuing PPP loans.
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Remote Shareholders’ Meetings Authorized and Encouraged for North Carolina Corporations in COVID-19 Environment

Apr 03 2020
On April 1, 2020, North Carolina Governor Roy Cooper issued Executive Order No. 125, which permits and encourages corporations incorporated in North Carolina to conduct all or any part of a shareholders’ meeting solely by means of remote communication during the current state of emergency in North Carolina. The Executive Order is effective for 60 days, unless earlier rescinded or replaced, and applies for North Carolina corporations holding, commencing, or sending formal notice to their shareholders of such a meeting during the state of emergency.