Glossary of Terms

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Hell-or-High-Water Clause

A clause that assures a lessor that it will be paid rent no matter what the circumstances. That remains true even if the lessor allegedly breaches its obligations. The lessor's wrongful act is treated as a separate and independent event and does not affect the lessee's obligation to perform under the lease. This extremely important clause turns leases into financial assets that lessors can assign to other financial institutions. (Courtesy www.elfaonline.org)

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