Best Practices: The Burden of Proving Your Guaranty Purchase Case #2
In the American criminal justice system, defendants are afforded a presumption of innocence which is derived from the fifth and fourteenth amendments to the Constitution. This standard, which has been enshrined through countless police procedurals and courtroom dramas, has become, in the minds of many people, the commonplace standard of proof in dealings with the ... Read More
Best Practices: Further Changes to Franchise Review Procedures Under SBA Policy Notice 5000-1941
In a previous Starfield & Smith article posted on December 14, 2016, I discussed SBA’s new franchise guidelines that were implemented with SOP 50 10 5(I) in an effort to streamline the franchise review process for lenders. Since the posting of that article, SBA has issued Policy Notice 5000-1941 (the “Policy Notice”), effective February 14, ... Read More
Best Practices: Why a Forbearance Agreement May be a Win-Win Solution for Dealing with a Struggling Borrower
When faced with a borrower who is a chronic late pay or who has approached the lender to discuss options because they have defaulted or are about to default on a loan, a lender may be quick to transfer the loan to their special assets department and let them sort it out. However, before declaring ... Read More
Best Practices: Effective May 1, 2017, Variable Rate Notes Must Include First Rate Adjustment Language
As interest rates have been rising over the past year and a half, the Small Business Administration (“SBA”) wants to be sure that SBA borrowers understand when their interest rate will adjust. Therefore, effective May 1, 2017, the SBA now requires Colson to verify that every SBA note includes the date of the first rate ... Read More
Best Practices: Protecting Your Mortgage’s Priority From Mechanic’s Liens
Mechanic’s lien laws are statutes that exist in every state to protect contractors, subcontractors and material suppliers that furnish work or materials to construction projects. As the name suggests, these laws allow contractors, subcontractors and suppliers to impose a lien on an owner’s property if the property has been improved by the goods, labor or ... Read More
Best Practices: Obtaining Sufficient Title Insurance on Your Construction Loan
Whether you are closing a conventional loan or a SBA loan, you want to make sure that you obtain sufficient title insurance coverage when financing a construction project. First and foremost, you need to instruct your borrower to neither commence construction nor to file a notice of commencement until after the lender’s mortgage/deed of trust ... Read More