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Borrowers Limited Liability Company (LLC)

Freiberger Haber LLP

The Relation Back Doctrine and Statutes of Limitation in Mortgage Foreclosure Actions

Freiberger Haber LLP on

Today’s BLOG deals with the “Relation Back Doctrine” (the “Doctrine”), which, inter alia, “allows a claim asserted against a defendant in an amended filing to relate back to claims previously asserted against a codefendant...more

Cadwalader, Wickersham & Taft LLP

Reliable Expectations May 2024 - Investors, We're Relying on You

Delaware remains the most popular jurisdiction for the domestic formation of private equity and venture capital funds (a “Fund”) as either a limited partnership or limited liability company.  In fact, 54.8% of the deals...more

Rivkin Radler LLP

Shared Appreciation Interest: Debtor-Creditor or Partners?

Rivkin Radler LLP on

When is a loan not a loan? When it’s something else – for example, equity. This is one of those pesky facts and circumstances issues that plague courts, taxpayers, and tax advisers to no end. Debt- On one end of the...more

Cadwalader, Wickersham & Taft LLP

The New Normal? June 2021 - The Importance of Springing Members

Springing Members are a tool that a structured finance Lender can use to reduce the risk that a Borrower will dissolve under state law. Under most state laws, an LLC that does not have at least one member will dissolve. ...more

Cole Schotz

SBA Releases Guidance On Paycheck Protection Program 2.0

Cole Schotz on

On January 8, 2021, the U.S. Small Business Administration (“SBA”), in consultation with the Department of Treasury, announced the re-opening of the Paycheck Protection Program (“PPP”) to first-time borrowers and certain...more

Arnall Golden Gregory LLP

SBA’s New PPP Loan Necessity Questionnaires Target PPP Recipients with Loans of $2M

On October 31, 2020, the U.S. Small Business Administration (“SBA”) published a Notice in the Federal Register seeking approval from the Office of Management and Budget for the collection of information through, among other...more

White and Williams LLP

You Have Questions…SBA Releases PPP Loan Forgiveness FAQs

White and Williams LLP on

The U.S. Small Business Administration (SBA), in consultation with the U.S. Department of the Treasury (Treasury), recently released a series of Frequently Asked Questions (the Forgiveness FAQs) focusing on forgiveness of...more

White and Williams LLP

The Main Street Business Lending Program – Frequently Asked Questions

On April 30, 2020, the Department of the Treasury and the Federal Reserve Board released a set of “Frequently Asked Questions” (FAQs) relating to the Main Street Business Lending Program (Main Street Program), which was...more

Hutchison PLLC

Client Alert: SBA Issues Additional Guidance for Self-Employed Individuals and PPP Borrowers Taxed as Partnerships

Hutchison PLLC on

On April 15, 2020, the U.S. Small Business Administration issued a new interim final rule (link) (the “Guidance”) that supplements prior guidance with respect to the Paycheck Protection Program (the “PPP”). Among other...more

Lowndes

Something New for Lenders to Think About: Divisions

Lowndes on

The Delaware legislature has enacted a change to Delaware LLC law that enables a single LLC to divide into two or more LLCs. A similar procedure is available for Delaware limited partnerships, but this article addresses only...more

Shumaker, Loop & Kendrick, LLP

Client Alert: A House Divided: New Risks to Lenders Under Delaware LLC Law

Recent changes to the Delaware Limited Liability Act (the “Act”) will require modification to Lenders’ forms of loan documentation, at least as they relate to loans to Delaware LLCs. The Act was amended effective as of August...more

Sullivan & Worcester

New Delaware LLC Right of Division

Sullivan & Worcester on

To maintain its national preeminence, the Delaware Legislature recently amended the State's Limited Liability Company Statute to grant Delaware LLCs a right which will be of concern to lenders. It amended its LLC law to...more

Troutman Pepper Locke

A Divisive Issue for Borrowers and Lenders: Delaware’s New LLC Division Statute

Troutman Pepper Locke on

Delaware has adopted amendments to its Limited Liability Company Act that permit so-called “divisions” to be effected by a Delaware limited liability company (“LLC”). These amendments, which became effective on August 1,...more

Ward and Smith, P.A.

Look Before You Sign … the Pitfalls of Personal Guaranties

Ward and Smith, P.A. on

Limited liability protections afforded by various corporate, limited liability, or limited partnership laws normally insulate business owners from personal liability for their business's debts. However, lenders routinely...more

Farrell Fritz, P.C.

Employee Loan Or Compensation?

Farrell Fritz, P.C. on

Everyone recognizes the importance of debt financing to a business. The business needs liquidity to purchase or improve assets, or to pay expenses. It borrows the necessary funds from an institutional lender that requires...more

Sheppard Mullin Richter & Hampton LLP

Lenders Cannot Prevent Borrowers From Filing Bankruptcy By Owning Minority Equity With Veto Power Over Borrower’s Decision To File...

In a recent decision, the U.S. Bankruptcy Court for the District of Delaware refused to enforce a provision in the debtor’s LLC operating agreement requiring a unanimous vote of the debtor’s members to authorize the debtor to...more

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