Best Practices: New Minimum Standard Requirements for ALTA Surveys
Late last year, the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS), successor to the American Congress of Surveying and Mapping (ACSM), adopted new Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys. The new standards went into effect February 23, 2016. There are some fairly substantial changes that deserve ... Read More
Best Practices: Getting the SBA Fundamentals Right #2
SBA lenders are often overwhelmed by the myriad rules, regulations and guidelines associated with SBA lending. However, by focusing on a handful of core concepts, Lenders can develop the tools which, when applied consistently to their SBA operations, will help them to understand SBA requirements in various situations and circumstances, and which will lead them ... Read More
Best Practices: Make NO Mistake – Circuit Courts Rule Against Lenders for Minor Errors in Security Documents
When financing a government guaranteed loan through the Small Business Administration (“SBA”) 7(a) program, lenders must not only identify all collateral required by the SOP 50 10 but also obtain a valid and enforceable security interest in that collateral pursuant to Article 9 of the Uniform Commercial Code (the “UCC”). In order to comply with ... Read More
Best Practices: Use Loan Proceeds to Refinance Existing Debt
When SBA lenders use loan proceeds to refinance existing debt, there are various requirements that must be met for the loan to be eligible. SOP 50 10 5 (H), Subpart B, Chapter 2, Paragraph IV. E sets forth these requirements. Not only is it imperative to make sure the debt being refinanced is eligible for ... Read More
Best Practices: Understanding the Automatic Stay in Bankruptcy
When a commercial loan goes into default, it is not uncommon for the borrower or guarantor (or both!) to enter bankruptcy. A bankruptcy filing by the borrower or guarantor has serious repercussions for a lender seeking to liquidate its collateral. The most serious and immediate of these repercussions is the automatic stay imposed under Section ... Read More
Best Practices: What Every Witness Should Know Before Giving A Deposition
As with most litigation, most of the time and expense is incurred in the pre-trial phase known as discovery. During discovery, the parties to the lawsuit have the opportunity to obtain relevant information from each other, and from persons who are not parties to the lawsuit. The most likely sources of useful information are documents, ... Read More
