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


Conducted on Wednesday, October 28, 2015

Recorded event now available

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Program Materials

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.

Description

Mezzanine lenders face a multitude of issues when seeking to foreclose on equity interests securing a mezzanine loan. Similarly, mezzanine borrowers must make several strategic decisions when facing a lender’s post-default enforcement of a mezzanine loan.

Unlike traditional mortgage loans, UCC Article 9 governs mezzanine loans. The UCC foreclosure process contains potential pitfalls and grey areas. However, with careful planning counsel can address legal concerns and minimize risks.

Listen as our authoritative panel addresses key legal issues for borrowers and lenders facing a mezzanine loan foreclosure under UCC Article 9 and provides best practices to effectuate a UCC foreclosure. The panel will also discuss bankruptcy considerations that affect borrower and lender strategies when a mezzanine loan goes into default.

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Outline

  1. Business and legal considerations
    1. Business review
    2. Due diligence
    3. Legal review
  2. Foreclosure by sale
    1. Basic rules
    2. Public vs. private sale
    3. Mechanics of the foreclosure process
    4. Traps for the unwary
    5. Borrower and guarantor responses to lender actions
  3. Strict foreclosure
    1. Nature of the remedy
    2. Strict foreclosure mechanics
    3. Potential problems
  4. Bankruptcy issues
    1. Joint administration
    2. Dismissal of bad faith filings
    3. Lift stay motions
    4. Substantive consolidation
    5. Other bankruptcy issues

Benefits

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?

Faculty

Cochran, James S.
James S. Cochran

Partner
O'Connor Cochran

Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral...  |  Read More

Prendergast, James
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

Weise, Steven
Steven O. Weise

Partner
Proskauer Rose

Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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