If a credit lease is involved, the following additional due diligence would be appropriate:
Does Tenant have rights to offsets, abatements or adjustments of rent?
Is Borrower required to maintain lease enhancement policy?
Does Tenant have termination rights (including due to casualty or condemnation)?
If Tenant can terminate, is Borrower/Landlord required to maintain casualty/condemnation lease enhancement policies?
If not fully amortizing, is Borrower/Landlord required to maintain residual value insurance?
Any other unusual or notable provisions in file relating to Credit Lease?