To the surprise of many, Congress failed to extend the Terrorism Risk Insurance Act of 2002 ("TRIA"), which is set to expire at the end of this year. Many hope that TRIA in some form will be re-authorized early in 2015 and, while there appears to be broad bipartisan support for re-authorization, it is not possible to predict when or if such passage will take effect. While watching for the insurance market's response to these developments, set forth below are some practical measures that may be useful for parties in the real estate lending market to consider in the meantime:

..Borrowers and Lenders should review their current deal documents to determine (a) if any defaults are or may be created as a result of TRIA's expiration and (b) how to handle insurance renewals if terrorism insurance becomes unavailable or prohibitively expensive...