Mezzanine Loan Foreclosures: Effectuating a UCC Foreclosure Sale and Navigating Bankruptcy Pitfalls
Protecting Lender and Borrower Interests and Overcoming Obstacles to the Sale
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide guidance for counsel to commercial borrowers and lenders facing a mezzanine loan foreclosure under Article 9 of the Uniform Commercial Code (UCC). The panel will outline best practices for lenders to carry out a UCC foreclosure on a mezzanine loan.
- Business and legal considerations
- Business review
- Due diligence
- Legal review
- Foreclosure by sale
- Basic rules
- Public vs. private sale
- Mechanics of the foreclosure process
- Traps for the unwary
- Borrower and guarantor responses to lender actions
- Strict foreclosure
- Nature of the remedy
- Strict foreclosure mechanics
- Potential problems
- Bankruptcy issues
- Joint administration
- Dismissal of bad faith filings
- Lift stay motions
- Substantive consolidation
- Other bankruptcy issues
The panel will review these and other key issues:
- What protections does UCC Article 9 afford mezzanine borrowers facing loan foreclosure?
- How should intercreditor agreements be structured to best protect the interests of mezzanine lenders?
- What strategies should mezzanine lenders and borrowers use to effectuate a smooth UCC foreclosure?
- What bankruptcy considerations come into play when a mezzanine loan goes into default?
James S. Cochran
Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral... | Read More
Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral packages and multiple jurisdictions. He also represents lenders in mezzanine loan transactions and other sophisticated commercial real estate financings, and has acted for lenders and other stakeholders in various bankruptcy matters, including DIP financings and section 363(f) sales.Close
James D. Prendergast
SVP, Legal Counsel-UCC Division
First American Title Insurance Company
Mr. Prendergast is General Counsel of the Uniform Commercial Code Division of First American Title Insurance... | Read More
Mr. Prendergast is General Counsel of the Uniform Commercial Code Division of First American Title Insurance Company. Prior to joining First American in 2001, he was in private practice in the Los Angeles area for over 25 years concentrating his practice primarily in the areas of commercial and corporate finance. He is Co-Chair of the ABA Joint Task Force on Filing Office Operations and Search Logic.Close
Steven O. Weise
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those... | Read More
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those secured by personal property, including structured financing. He is regarded as one of the foremost authorities on Article 9 of the UCC. He is a member of the Permanent Editorial Board for the UCC and a member of the American Law Institute’s UCC Article 9 Drafting Committee. Mr. Weise is also the past chair of the American Bar Association’s Business Law Section Legal Opinions Committee.Close