For a lender in bankruptcy, the best situation is to be an over-secured creditor, meaning the value of your collateral exceeds your debt. A creditor in this exalted category can recover principal, interest (including...more
We previously notified you that the CARES Act contained a key provision related to existing SBA loans. Section 1112 of the Act appropriated $17 billion to subsidize principal, interest, and fees for six months for some small...more
If you lend money, you know – or should know – it is a cardinal sin to collect a debt or repossess collateral after a borrower files bankruptcy.
Bankruptcy triggers the automatic stay – a command, not a suggestion, that...more
12/13/2019
/ Actual Damages ,
Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 13 ,
Creditors ,
Debtors ,
Harley-Davidson ,
Lenders ,
Punitive Damages ,
Section 362 ,
Willful Violations
What is virtual currency?
Is it money? Is it a commodity? Is it a hybrid of the two or something else entirely? The answer to the question has profound implications for lenders seeking to secure loans with virtual...more
In my last article, I discussed whether inconsistent dates on a promissory note and deed of trust could cause problems in foreclosure.
But what if you can't even find the original promissory note? Perhaps it was...more
Consider this scenario: You loan money to a borrower.
You intend to secure the loan with a deed of trust encumbering real property. Your borrower signs a promissory note dated November 7, 2006. But your deed of trust is...more
In my previous articles, I discussed the challenges of using Article 9 of the Uniform Commercial Code ("UCC") to create and perfect a security interest in virtual currency like Bitcoin, Ethereum, or Litecoin. I also discussed...more
5/21/2018
/ Bitcoin ,
Blockchain ,
Borrowers ,
Collateral ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Institutions ,
Lenders ,
Smart Contracts ,
Uniform Commercial Code (UCC) ,
Virtual Currency
In my previous article, I discussed the challenges of using Article 9 of the Uniform Commercial Code ("UCC") to create and perfect a security interest in virtual currency like Bitcoin, Ethereum, or Litecoin.
(I use...more
The United States District Court for the Middle District of North Carolina recently issued a decision that demonstrates the power of attorneys’ fees provisions in promissory notes and guaranty agreements. In TD Bank v. Jay...more
Henkel v. Triangle Homes is a North Carolina Court of Appeals case with dueling tax foreclosure proceedings involving the same property. One foreclosure proceeding was for unpaid municipal taxes and the other for unpaid...more
8/9/2017
/ Appeals ,
Federal Taxes ,
Foreclosure Sales ,
Forfeiture ,
IRS ,
Lenders ,
Lien Priority ,
Local Taxes ,
Non-Judicial Foreclosures ,
Property Tax ,
Recording Statutes ,
Tax Liens
On Friday, May 5, 2017, in a major victory for lenders, the North Carolina Supreme Court reversed the North Carolina Court of Appeals’s decision in United Community Bank v. Wolfe. In July 2015, the Court of Appeals decided in...more
5/10/2017
/ Appeals ,
Borrowers ,
Community Banks ,
Deficiency Judgments ,
Foreclosure ,
Genuine Issue of Material Fact ,
Lenders ,
NC Supreme Court ,
Substantial Evidence Standard ,
Summary Judgment ,
Valuation
The United States Court of Appeals for the Fourth Circuit—which covers federal courts in North Carolina—recently handed a victory to residential real estate lenders dealing with borrowers who file for Chapter 13 bankruptcy...more