Commercial Mortgage Modifications: Lien Priority, Title Insurance, and Bankruptcy Issues
Structuring Modification Agreements While Avoiding Legal Pitfalls
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE course will guide lenders' and borrowers' counsel on negotiating and documenting commercial mortgage modifications while protecting their clients' interests against potential lien priority challenges, title pitfalls, and bankruptcy issues.
- Popular objectives and current trends for loan modifications
- Modifying loans for construction that stalled then restarted
- Extending maturity date; changing or removing extension options
- Adjusting loan amount; obligatory vs. optional advances
- Changing interest rate; bifurcating the rate
- Modifying payment provisions
- Changing, adding, or releasing collateral securing the loan
- Modifying disbursement provisions to restart a dormant construction project
- Key legal considerations to address with a loan modification
- Priority issues, including the impact of intercreditor agreements and lien bifurcation
- Title insurance: creditors' rights exclusions and available endorsements
- Title insurance: changes in mechanics' lien protections for lenders and related issues impacting borrowers and guarantors
- The threat of bankruptcy and documenting the possibility
- Pre-negotiation agreements
- Governing law in multi-property transactions
- Documentation strategies
- Role of third parties and estoppels
- Recordable and non-recordable documents
- Loan cleanup and clarification
The panel will review these and other noteworthy questions:
- When amending or modifying a commercial mortgage loan, what lien enforceability issues must lenders consider?
- How has discontinuation of creditors' rights coverage in title insurance policies impacted mortgage modification transactions?
- What is the optimal title insurance coverage in a modification transaction?
- What bankruptcy issues should lenders and borrowers anticipate and proactively protect against in the mortgage modification documents?
Shareholder; Co-Chair Fiduciaries, Receives & Trustees Group; Co-Chair Cannabis & Hemp Industry Group
Mr. Bitan is a trusted strategic advisor who frequently represents lenders, financial institutions, investors, and real... | Read More
Mr. Bitan is a trusted strategic advisor who frequently represents lenders, financial institutions, investors, and real property owners in business and commercial litigation, creditors’ rights, real estate, restructuring, provisional remedies, collections and post-judgment enforcement. He has represented state and federal court receivers in hundreds of equity, real estate, and health & safety receiverships, and has assisted in the recovery of hundreds of millions of dollars in assets for secured creditors. In addition, Mr. Bitan advises alcohol and cannabis businesses on a wide variety of issues, including regulatory advice, false advertising, financing, IP, and assembling teams of attorneys to provide corporate and employment advice. He is on the board of the California Receivers Forum, a member of the executive committee of the USC Real Estate Law & Business Forum, and is on the planning committee of the National Association of Federal Equity Receivers.Close
Richard P. Ormond
Shareholder; Co-Chair Fiduciaries, Receivers & Trustees Group
Mr. Ormond has over 23 years of experience that includes finance, special servicing, loan syndication and... | Read More
Mr. Ormond has over 23 years of experience that includes finance, special servicing, loan syndication and participation, real estate, lending and banking, receivership, cannabis regulations, commercial litigation, and restructuring. He has tried numerous cases in state court, federal court and bankruptcy court and has arbitrated dozens of matters. Mr. Ormond is one of the nation’s leading experts concerning banking and finance; loan servicing; receivership law; and cannabis regulations. He is the former President of the California Receivers Forum, and he is the former Chair of the Remedies Division of the Los Angeles County Bar Association. Mr. Ormond also teaches Cannabis Business and Finance Law at Loyola Law School and Continuing Legal Education courses on dispute resolution, debt enforcement, secured transactions, cannabis law and receiverships.Close