TIC Consultants

A DST agreement may contain a provision that provides that if the trustee determines that the DST is in danger of losing the property due to its inability to act because of the seven deadly sins, it can convert the DST into a limited liability company (the Springing LLC) with pre-existing agreed-upon terms. Delaware law permits the conversion through a simple filing. The Springing LLC will contain the same bankruptcy remote provisions as the DST (for the lender's benefit), but it will prohibit raising additional funds, raising of new financing, renegotiating the terms of the existing financing or entering into new leases. In addition, it will provide that the trustee (or sponsor) will become the manager of the LLC.



29746 Nella Lane \| Vista CA 92084 \| Phone 760-726-1031 \| Fax 760-726-1032
	Securities offered through Lighthouse Capital Corporation, Member FINRA/SIPC 659 Abrego Street, Suite 6, Monterey, CA 93940, 831-375-6624 Real estate brokerage services provided by Regal Realty \| DRE # 1869810 \| 760-666-8418 The material contained in this website does not constitute an offer to buy or sell securities or real estate. Such an offer can only be made by a sponsor's private placement memorandum or prospectus, which fully describes the offering, including risks and expenses. Turner Financial Group, Inc. and Lighthouse Capital Corporation are not affiliated. (See Additional Disclosures)