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Category Archives: Single Purpose Entity

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Special Purpose Vehicle (SPE): Comment in Recent US Supreme Court Case Encourages Bankruptcy Risk

Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Workout Issues

Recently, Professor Joshua P. Fershee posted a very interesting observation on the Business Law Prof Blog.   Professor Fershee comments on a legal concept called the "single enterprise" theory, and on references to this concept by the US Supreme Court in a decision published by it this past summer (Goodyear Dunlop Tires Operations, S.A. v…. Continue Reading

Tips on Bad Boy Carveouts: Don’t Overlook These (Surprising?) Sources of Liability

Posted in Remedies, Single Purpose Entity, Tough Times for Lenders

Recourse against individual owners or sponsors (and\or their operating companies) is a significant leverage point for any lender in a distressed commercial real estate loan. Both CMBS loans and portfolio loans (typically life company) technically are “non-recourse” in that the lender agrees to look to the collateral for the ultimate recovery of the loan. However, the… Continue Reading

Revisiting Your Collateral Description: Is Your Description of Personal Property [Owned By A SPE Borrower] Correct?

Posted in Single Purpose Entity, Tough Times for Lenders, Workout Issues

. . . continuing my discussion with Nelson Block** on the basic and important question of collateral descriptions: Keith: Pick one of the biggest changes or trends over the last 15 years on the topic of collateral descriptions. Nelson: In the last decade, with the rise of single asset developments, there should be no reason to limit… Continue Reading

’11 MBA-CREF Convention Day #2: Observations & Comments On Technology & Market Share

Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Technology (including Green Buildings), Tough Times for Lenders

Below are some observations and comments collected by me from formal and informal meetings, and random conversations though lunch on this second day of the 2011MBA-CREF Convention. They do reflect my "coming up roses" word picture for ’11: we’ll have more roses blooming in the commercial real estate finance garden, but in ’11 we’ll still… Continue Reading

Deed in Lieu of Foreclosure: When To Do A DIL? Any Title Insurance Issues In A DIL?

Posted in FAQs, Remedies, Single Purpose Entity

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). We’ve addressed deeds in lieu of foreclosure in the past (link).  Here is some more information on it. FAQ #32 – When should a lender (or servicer) seek/accept a deed in lieu agreement? State’s foreclosure… Continue Reading

Into the Looking Glass: MBA Servicing & Technology Conference – day two

Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Workout Issues

Yesterday (Thursday) was the second, and my last, day of the conference.  As I did with the first day of the conference, I summarize some of the sessions.  So, here’s the executive summary: From a session on bankruptcy issues: as reported by the Commercial Mortgage Securities Ass’n in its press release, the bankruptcy court in the General… Continue Reading

Into the Looking Glass: MBA Servicing & Technology conference – day one

Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Training, Workout Issues

The first day of the 2009 MBA’s Commercial/Multifamily Servicing and Technology conference has ended. It has been a long day, filled with attending panel presentations and meetings with people over meals, in the halls and at receptions.  It started at a 7:30 breakfast and ended @ 10p (when I refused to join a group that headed toward… Continue Reading

Special Purpose Properties

Posted in Good Times for Lenders, Single Purpose Entity, Tough Times for Lenders

The Headaches are Just Beginning One of the real nightmares that lenders face is taking over the operation of "special purpose properties." I’m talking about properties such as hotels (with restaurants, bars, and liquor license issues), nursing homes, hospitals, and other types of very specific franchise operations. Many times the licenses required to operate and… Continue Reading