Whether you’re a loan originator, or a loan servicer, reviewing a commercial lease (or amendments) becomes more challenging in tough real estate markets simply because there are more tenants in distress – and you need to identify them. So, are there lease provisions that could indicate a distressed tenant? Below  is a short list of

People don’t “connect” their ownership (even a minority ownership) with their liability under bad-boy or non-recourse carveout agreements (whether in the form of an indemnity, or as a guaranty).   So, minority owners often transfer ownership without getting a release from bad boy liability .  It could be a costly mistake.

With deals under water and

This seems to be insurance week for me. Later this week, I’ll jump into a recent court case that recently hit the headlines. Today, however, I received an e-mail warning of the POSSIBLE unauthorized issuance of property insurance polices by “an unathorized third party purporting to represent the insurers listed below and not to

I’ll admit it: I’m old and getting older.

This hit me earlier this week as I argued  with a lawyer about the enforceability of due-on-sale clauses in commercial mortgages.  The conversations boggled my mind, because the debate was “settled” in 1982 when Garn-St. Germain (citation below) was enacted – and the debate ended: due-on-sale clauses

Train wrecks draw a crowd.  Look at this old film from the 1913 California State Fair (click the text).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unfortunately, many co-lender structures (secured by distressed commercial real estate) look exactly like this train wreck.
 
 
 
Why?
  • Some lenders used a co-lender agreement without considering the basic nature or perspective of the agreement