Banks are regularly sued by customers who discover that someone has forged or added an unauthorized signature to a check that has been honored by the drawee.
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Let’s say you arrive at your desk one bright and sunny morning and find that your counterpart at a competing bank has left you a voicemail, proudly telling you she’s just made a loan to the nation’s top manufacturer of buggy whips, fully secured by advanced, state-of-the-art buggy whip manufacturing tools and an expansive and varied inventory of the best buggy whips made anywhere. "Would your bank like a piece of it?" she asks. Sounds great! You call her right back and exclaim: “We’re in!” And then the other banker asks, “Do you want participation or assignment?”
“Most-Favored Nation” is a term in international agreements, under which trade terms offered one nation are made no less favorable than the trade advantages given any other nation. In other words, the recipient gets the best deal the granting nation affords.
The other day a young lawyer in my firm asked: “Does the client want a prepayment penalty in the loan agreement?”
I made him stand the corner and repeat, “There are no prepayment penalties. There are no prepayment penalties.” Over and over.
Section 523(a)(2)(A) of the Bankruptcy Code provides that a debtor may not receive a discharge for debts found to be incurred by fraud. It is well-settled that if a debtor borrowed money intending not to repay it, the debt is non-dischargeable. But what happens when the debtor-borrower misrepresents the purpose of the loan? That is, when the borrower tells the lender he needs the loan for x, but all the time he really intended to spend on y?
Pete Stevens is an attorney specializing in insurance reglatory law. Pete's article Regulation, Regulation and Even More Regulation was published in the spring 2013 Required Reading Newsletter.
Welcome to guest blogger, Marianne G. Sorensen, an attorney in our St. George office that focuses on real estate law.
Could your (or your employees’) use of social media invite a claim that your lending practices are discriminatory?
“No way!” you state, knowing that you have trained bank personnel in complying with regulations issued under the Fair Housing Act, eliminated any overt evidence of discrimination, and carefully implemented policies to minimize claims of disparate treatment.
Pete Stevens is an attorney specializing in insurance reglatory law at Jones Waldo. His recent article in National Mortgage Professional magazine, "A New Era for Mortgage Closings," shares concerns for the propensity of scams and untruths in the mortgage industry. Read his piece on the growing importance of objective validation and vetting.
CLICK HERE for article.
More information on Pete and his practice can be found HERE. You can reach him via email at: email@example.com.
Franchisees can be among the best tenants for a retail landlord. They tend to generate above-average customer traffic and revenue, and can increase property values and cash flow to other tenants. Franchisees are using a proven business formula and they can look to the franchisor for valuable assistance. Finally, to a greater or lesser degree, the franchisor will police the franchisee in matters of operations and finance in many areas where the landlord will benefit.
George Sutton's article on how US policy creates growth for big banks, while restricting it for small banks, hit today in the online edition of American Banker.
According to Sutton, "Three things are driving the growth of large banks: market demand, access to capital and regulatory burden. Failing to consider these in the rush to break up "too big to fail" banks could force critically important financial services to move offshore or to less stable nonbank competitors."
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