Blogs & Resources

The economy, to put it lightly, has not been the best in the recent years. One potentially lucrative by-product of the economic downtown was the opportunity for prospering banks to acquire failed banks from the FDIC at an incredible discount. The purchasing bank, in acquiring the failed bank, will likely enter into a Loss-Share Agreement (LSA) with the FDIC. Essentially, Loss-Share Agreements give the purchaser the benefit of the FDIC absorbing a large percentage of the losses realized on the acquired receivables. The purchasing bank, generally speaking, only incurs around 20% of the losses with the FDIC incurring the remaining 80%. While this seems like a “no-brainer” agreement, entering into a LSA—much like every contract—requires scrutiny to maximize revenue and avoid potential lawsuits. Beyond the general advice of reading every word prior to signing a contract, this Blog post identifies five things an inquiring bank needs to know about LSAs.

Stop me if you have heard this one: An attorney receives a call from a desperate potential new client. Somehow the business transaction this international client was dealing with has hit an unexpected bump in the road, and because the client is dealing with an international business set here in the U.S., the situation now requires the fine eye of an experienced business litigation attorney. The company the new client claims he works for and the debtor checks out so the attorney draws up representation papers and accepts the new client. Within no time at all the client calls and informs his lawyer a settlement to be paid to the lawyer’s trust account within days. Time is of the essence, and the client convinces the lawyer it needs the money wired as soon as the lawyer receives the money order or cashier’s check.

The Small Business Administration (“SBA”) has been providing small businesses with loans since its creation in 1953.  Its mission statement is “…to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.”  It […]