Tag Archives: Banking and Lender Liability Law

Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges – Part 7: Expediting the Commercial Foreclosure Process Under Section 702.10, Florida Statutes

The first half of this series evaluated options available to lenders prior to instituting a commercial foreclosure action.  The second-half of this series has evaluated available options to lenders during the pendency of the foreclosure action.  Since there are additional … Read Full Post

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How to Maximize Recovery on a SBA Loan by Negotiating a Workout Agreement

In the event a borrower is seriously delinquent on making payments under a SBA loan, or the SBA loan is classified in liquidation status, lenders and CDCs must develop a prudent and commercially reasonable strategy to maximize their recovery on … Read Full Post

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SBA Loans: How to Maximize Recovery by Liquidating Personal Property

When a small business association (“SBA”) loan is converted to liquidation status, the lender must begin liquidating the collateral. Lenders must liquidate all personal property that has a Recoverable Value over $5,000. If the Recoverable Value is over $5,000, the … Read Full Post

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SBA Loans: How to Maximize Recovery by Liquidating Real Property

When a small business association (“SBA”) loan is converted to liquidation status, the lender must begin liquidating the collateral. If the collateral is real property, the lender must liquidate all parcels of real property that has a Recoverable Value over … Read Full Post

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SBA Loan Site Visits: How to Prepare and What to Expect

Conducting site visits are an important aspect of servicing SBA loans. Site visits allow lenders and Certified Development Companies (CDCs) to gain a first-hand impression of the borrower’s business operations, evaluate risks, and inventory the collateral. Frequent site visits help … Read Full Post

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Loan Modification and Deferment Requirements for SBA Lenders

If a borrower is experiencing difficulties making payments on their SBA loan, they may seek relief with the lender or CDC by requesting a loan modification or deferment. When a lender or CDC receives such a request from a borrower, … Read Full Post

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What Responsibility and Authority do SBA Lenders Have in Servicing and Liquidating Loans?

Lenders are responsible for servicing and liquidating all of the 7(a) loans in their portfolio. CDC’s are responsible for servicing 504 loans in their portfolio, but they will only be responsible for liquidating the loan based on its designation. Lenders … Read Full Post

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How SBA Lenders Ensure Expense Recovery in Loan Liquidation and Litigation

Lenders should be cognizant about what expenses are classified by the SBA as recoverable or non-recoverable. The SBA does not pay for non-recoverable expenses, such as any fee or cost incurred that was not necessary, reasonable or customary. In addition, … Read Full Post

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Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges: Part 5 – Commercial Foreclosures 101

Sometimes, foreclosure of a commercial property is the only option available to lenders and servicers to limit losses as a result of defaults on hotel and restaurant mortgages.  Parts 1-4 of this series discussed pre-foreclosure options available to lenders dealing … Read Full Post

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Mitigating Risks Associated with Hotel, Restaurant and Entertainment Industry Economic Challenges: Part 4 – Assignment of Rents Under Section 697.07, Florida Statutes

Parts 1-3 of this series explored alternative pre-foreclosure loss mitigation options for lenders including acceleration and enforcement of personal guarantees. This article explores Section 697.07, Florida Statutes, which governs the assignment of rents. Assignment of Rents under Section 697.07, Florida … Read Full Post

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