Financial Institutions and Markets (J)



By: Arnie Spevack; Lerch, Early & Brewer (Maryland, USA - TAGLaw)

When a borrower requests a commercial loan for a new business or a business acquisition, lenders frequently require the borrower to secure the business loan with a mortgage on a personal residence. The residence may be taken as additional collateral, or because of the insufficiency of other business collateral to secure the loan. Using a residence as additional collateral frequently is the best way to meet a lender's collateral requirements.

Read more: Pledging a Residence to Secure a Commercial Loan

By: Michael Smith, Lerch, Early & Brewer (Maryland, USA - TAGLaw)

In most commercial loan transactions, a lender will secure a loan by filing a Uniform Commercial Code (UCC) financing statement to perfect its security interest in the borrower’s personal property. A loan is perfected when the lender receives priority over other creditors wishing to obtain a lien against the collateral. Typically, the lender files the financing statement after the loan has closed. However, it is possible to file a financing statement pre-closing, provided the lender obtains the borrower’s prior written authorization. A lender may want to pre-file a financing statement if the lender is concerned that an intervening lien may be filed during the gap of time between when a UCC lien search was last conducted and the time that the loan 
closes.

Read more: Perfect Your Security Interest By Filing Before A Closing

By: Alison Rind; Lerch, Early & Brewer (Maryland, USA - TAGLaw)

A recent 7th U.S. Circuit Court of Appeals case reminds lenders that it is incumbent upon the lender to verify the income stream before extending credit based on rental income. In Wells Fargo Equipment Finance Inc. v Titan Leasing, Inc., the bank extended non-recourse credit (a loan secured only by collateral) to a manufacturer of locomotives relying on the income stream from a specific lease executed by the borrower and its lessee for a locomotive. The borrower presented a fully executed copy of the lease to the bank as evidence of the income stream. The borrower warranted in the loan documents that the locomotive was delivered and accepted by the lessee and that the lessee acknowledged the locomotive’s receipt and acceptance.

Read more: Lenders, Be Wary When Extending Credit on Rental Income Stream

By: Matthew G. DiMeglio; Lerch, Early & Brewer (Maryland, USA - TAGLaw)

A federal court of appeals held that a bank’s deed of trust had priority over an IRS tax lien, even though, the IRS filed notice of the tax lien more than a month before the bank recorded the deed of trust. On January 4, 2005, Restivo Auto Body, Inc. borrowed $1 million from Susquehanna Bank. The bank secured the $1 million loan with a deed of trust on two pieces of property executed and dated on January 4, 2005. On January 10, 2005, the IRS filed notice of a federal tax lien against Restivo for unpaid employment taxes. On February 11, 2005, the bank recorded the deed of trust from Restivo.

Read more: Federal Court Holds That Bank’s Deed of Trust Primes IRS Tax Lien Despite Its Subsequent...

By: Att. Nilay Celebi; Erdem & Erdem (Turkey - TAGLaw)

Introduction

The Capital Markets Board adopted the Communiqué on Market Abuse (VI-1.104.1) (“Communiqué”) in order to determine the acts and transactions that result in the distortion of the reliability, transparency, and stability of stock markets and other organized markets, which cannot be justified through reasonable economic or financial grounds, and sanctions upon those persons who do such acts and transactions. The Communiqué was published in the Official Gazette on 21.01.2014, and came into effect the same day. The Communiqué sets forth market abuse actions, and actions that are not deemed as market abuse. 

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