Sometimes, they may even accuse you of causing them harm through negligence, breach of contract, or even breach of fiduciary duty. While the typical borrower-lender relationship doesn't create a fiduciary duty, certain...more
When an SBA loan goes into default, the SBA requires a lender to commence litigation when the lender concludes that (1) defensive action is necessary to protect the collateral or ability to collect from the obligor or (2)...more
10/17/2019
/ Affirmative Defenses ,
Best Practices ,
Borrowers ,
Corporate Counsel ,
Counterclaims ,
Defense Strategies ,
Foreclosure ,
Litigation Fees & Costs ,
Litigation Strategies ,
SBA ,
SBA Lending Programs ,
Small Business ,
Small Business Loans
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
Each day seems to bring another story about Bitcoin, Ethereum, Litecoin, or another virtual currency. If virtual currencies continue to grow in popularity, it's only a matter of time before borrowers offer to pledge virtual...more
On August 30, 2017, an amendment to North Carolina’s foreclosure statutes took immediate effect. The amended statute, Section 45-10, concerns substitute trustees under a deed of trust. As amended, Section 45-10 now prohibits...more
In an important decision for creditors, the North Carolina Supreme Court recently clarified the distinction between judicial foreclosure and non-judicial foreclosure by power of sale. In U.S. Bank v. Pinkney, the Supreme...more
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