7 Clauses You Need in Your Loan Agreements to Reduce Your Litigation Costs
Date:October 9, 2013
Instructor: Jeffrey S. Feldman
To Register for this event, click here.
Lenders enter into many written agreements while originating and servicing their loan portfolio, and nearly all of them include “boilerplate” provisions designed to protect the lender in the event of a dispute.
These boilerplate provisions, although they are often included in the agreement without much thought to their contents, can greatly impact the cost of any eventual litigation or arbitration.
Join Starfield and Smith’s Jeff Feldman as he examines the disputes that can arise as a result of boilerplate provisions that are not carefully drafted.
Importantly, he will suggest alternative provisions that are designed to narrow the scope of any future litigation and reduce legal expenses.
Note SBA does not permit lenders to add any boilerplate to the SBA loan authorization. The Boilerplate is SBA’s national standard. No regional, state, or local loan authorization boilerplate language may be used in place of the Boilerplate, and the language in the Boilerplate MUST NOT be altered.
However, from this webinar, SBA lenders can add boilerplate clauses discussed in this webinar to their agreements related to loan servicing, such as forbearance agreements, loan modifications and assumption agreements.
Of course conventional lenders can take advantage of these clauses also.
You will learn:
1. How to draft attorney’s fee shifting provisions that avoid the need for expert witnesses and unnecessary battles over whether the lender was the “prevailing party” in litigation;
2. How to use consent to jurisdiction and venue clauses to avoid procedural battles while still retaining the option of bringing a claim in the federal or state courts;
3. How to draft arbitration clauses to reduce arbitrator fees and travel costs;
4. How to draft arbitration clauses that will result in awards that are enforceable in the courts;
5. How to draft arbitration clauses that ensure that the lender is protected by the applicable statutes of limitation;
6. How to gain the benefit of the longest available statutes of limitations for your claims;
7. How to draft clauses that reduce the likelihood of lender liability claims based on alleged promises and alleged amendments to your agreements;
8. How to draft clauses that allow your documents to be executed in counterparts;
9. How to draft language in guarantees that preserves the lender’s right to pursue tenancies by the entireties property; and
· How to draft arbitration clauses that limit how long it will take to get an arbitration award;
· How to draft arbitration clauses that limit the availability of discovery before the hearing;
· How to draft arbitration clauses that limit the authority of the arbitrator to award punitive or consequential damages; and/or
· How to draft arbitration clauses that will prevent the other party from purposefully delaying the process by not paying arbitration fees and costs.
Who should attend:
Commercial Loan Underwriters
SBA Loan Underwriters
Small Business Lending Department Managers
Credit Risk Managers
Chief Credit Officers
This webinar is rated “EXPERT” for all attendees.
Coleman’s Webinar level of instruction guide:
ELEMENTARY — The webinar assumes the audience has no experience in the topic.
BASIC — The webinar is for small business lenders who have some experience in the topic. The webinar is designed as the Topical 101 course. This is the appropriate level of instruction for managers who oversee the function.
INTERMEDIATE — The webinar solves an unique problem for the small business lending professional. A strong working knowledge of the subject matter is recommended.
EXPERT — The webinar discusses detailed, technical and advanced topics for the well-seasoned professional. A strong working knowledge of the subject matter is a must.
Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for your regulators. Also, this documents the answer for SBA’s Review question of continuing staff education.
We will automatically forward a certificate of participation for those who are registered to attend the webinar via GoToWebinar.
If you have purchased the unlimited site license and would like certificates for all who attend simply forward their names and email addresses to firstname.lastname@example.org. She will email the certificates to all attendees.