USA - ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser and Katie Sinclair, Dentons
oral, and valid rules and regulations adopted under Section 35-9A-302 embodying the terms and conditions concerning the use and occu - pancy of a dwelling unit and premises”) related to the rental of any dwelling unit (a “structure or the part of a structure, including a manufactured home, that is rented as a home, residence, or sleeping place by one or more persons”) to a tenant (“a person entitled under a rental agree - ment to occupy a dwelling unit to the exclusion of others”); Sections 35-9A-141. This statute includes additional rules and regula - tions for both landlords and tenants in the resi- dential context. Non-residential real estate leas - es may include specific restrictions related to the category or use of the leased premises, but such leases are generally not subject to specific regulations or laws due to the use or category of the underlying leased premises. 6.15 Effect of the Tenant’s Insolvency Leases often contain language stating that a ten - ant’s insolvency or the filing of any bankruptcy petition, voluntary or involuntary, constitutes a default under the lease. However, if the lease remained in force at the filing of a bankruptcy petition, the leasehold estate is considered an asset of the tenant, which is protected by the Bankruptcy Code’s automatic stay. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations In addition to requiring a tenant to provide a security deposit under the lease, a lease may provide that a tenant grants the landlord a secu - rity interest in the furniture, fixtures, equipment, inventory, etc, located at or related to the leased premises. The landlord may file such a security agreement under applicable law.
A landlord may also require the tenant to deliver a letter of credit or personal guarantee for costs related to any default by a tenant under the lease. However, for residential leases, liens or security interests of a residential landlord in a tenant’s household goods are not enforceable unless perfected before January 1st, 2007 (Sec - tion 35-9A-425). Commercial landlords are also granted statutory liens over crops grown on rented land (Section 35-9-30) and for the goods, furniture, and effects of a tenant or subtenant for rent due (Section 35-9-60). 6.17 Right to Occupy After Termination or Expiry of a Lease Generally, a tenant does not have the right to continue to occupy the leased premises after the expiry or termination of a commercial lease. When a tenancy is for a certain period of time and the term expires under the lease, the tenant is bound to surrender possession without the landlord providing notice to quit or demanding possession (Section 35-9-8). If a landlord has terminated the lease for a breach or default, the landlord must give the ten - ant notice of termination at least ten days prior to terminating a commercial lease, unless the lease provides for additional time (Section 35-9-6). If the tenant does not deliver possession of the leased premises after demand, as described above, the landlord may pursue an unlawful detainer action in the district court of the county where the premises are located (Section 6-6- 330). The landlord’s complaint must be served on the tenant at least six days before the hearing date (Section 6-6-332).
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