Commercial Property in United States
Practical Information
Note: Some of this information was last updated in 1982
real property (in U.S. law) used in connection with all activities of business, industry, and trade, for the purpose of producing income. These may include: (1) residential property such as an apartment house or hotel; (2) industrial property, such as a factory building or loft; (3) business property, such as a retail store, office building, gasoline station, garage, warehouse, market, motel or resort property; and (4) amusement and recreation properties, such as theaters, taverns, bowling alleys, dance halls, and skating rinks.
What is Commercial Property?
For a meaning of it, read Commercial Property in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Commercial Property.
In the Foreign Sovereign Immunities Act of 1976
Attachment and Execution: Used for a Commercial Purpose
According to research about Commercial Property from the Federal Judicial Center:In a commercial activity case, the property of the foreign state must be “used for the commercial activity upon which the claim is based.”213 Accordingly, the statutory definition of “commercial activity” under § 1603(d) (discussed above) is applicable.214 This requirement excludes such property as embassies and consulates, and military vessels and aircraft. The Second Circuit has held that the property in question must be “used for a commercial activity” at the time the writ of attachment or execution is issued.216 The question arose in the context of attempts by holders of defaulted bonds issued by the Republic of Argentina to execute their judgments against certain investment accounts administered in the United States by private corporations for the benefit of Argentine pensioners. The Argentine government had nationalized its private pension system and thus claimed the funds in the investment accounts. The district court determined that the assets were used for a commercial activity and ordered their attachment. The appellate court disagreed, noting that when the attachment was ordered, the only activity that the republic had engaged in was the adoption of a law taking legal control of the funds. Argentinian authorities had not had the opportunity to use the funds for any commercial activity whatsoever. Under § 1610(a), the Second Circuit said, “a sovereign’s mere transfer to a governmental entity of legal control over an asset does not qualify the property as being ‘used for a commercial activity.”217 However, the Second Circuit has also held, in the context of a sale of scientific equipment by one private party to another, that a foreign government’s remittance of the purchase price to the seller does constitute market activity even if the government purchased the equipment in order to implement a national program of scientific research and development, had no “profit motive,” and obtained no tangible benefit from the transaction.218 Since the funds were used for a commercial activity in the United States, they were accordingly subject to attachment under § 1610(a). Several courts have interpreted this requirement to apply to the entirety of the funds at issue, so that, for example, the use of a portion of a bank account for commercial purposes does not deprive the entire account of its immunity.See Diplomatic Property, Protection of Foreign Property and Enforcement Jurisdiction.
Leases of Business or Commercial Property in relation with Equipment Leasing
This section convey specific aspects of Leases of Business or Commercial Property covered in connexion with Equipment Leasing and banking / lending Institutions.
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See Also
Popular Topics related with Commercial Property
- Foreign Immunity
- U.S. Foreign Sovereign Immunities Act
- Foreign Sovereign Immunity in International Law
- Immunities Definition
- Immunity Clause
- Immunity of Heads of State
- Jurisdictional Immunities