Landau Interviewed by Crain’s New York Business on New York’s New Cannabis Law

James K. Landau, Commercial Litigation

The historic passage of New York’s new Cannabis Law (on March 31, 2021) – that legalizes adult-use of cannabis (marijuana) – has made Jim Landau a very popular lawyer at McCarthy Fingar. Jim, who leads the firm’s Cannabis Law group, was recently interviewed by Crain’s New York Business on the new law’s effect on mortgage financing for landlords who lease property to weed dispensaries, in an article entitled, “Small landlords could see big benefits of marijuana legalization.” The interview is excerpted below:

“There’s also a chance that banks may look the other way, said James Landau, a legal expert on cannabis.

‘The landlords that have federally backed mortgages are nervous they may have to list who their tenants are and who their businesses are,’ he said, ‘but the likelihood is that there’s not going to be enforcement here.’

Even if a landlord doesn’t have a federally backed mortgage but is depositing its rent roll from a marijuana tenant into the bank, that could technically be an issue. But it all depends on how much the bank is willing to inquire about who the landlord’s tenants are, Landau said.”