A Lease Provision That Agrees to Release and Hold Harmless

question 31

True/False

A lease provision that agrees to release and hold harmless both the landlord and tenant from each other's actions in regard to any casualty to the premises impairs an insurance company's right of subordination.

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Definitions:

Perpetuity

A type of annuity that generates an infinite series of payments into the future, without an end date.

Present Value

The value now of a future monetary total or cash flows, based on an established return rate.

Cash Flow

The overall flow of cash and assets similar to cash entering and exiting a corporation.

Present Value

The value today of a sum of money expected in the future or a series of financial inflows, calculated with a specified rate of interest.