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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Thursday, August 15, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will guide counsel for 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.

Faculty

Steven O. Weise
Partner
Proskauer Rose LLP

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.

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James S. Cochran
Partner
O'Connor Cochran, LLP

Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral packages and multiple jurisdictions. He 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, section 363(f) sales and claims transfers.

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Description

Mezzanine lenders face many 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, counsel can address legal concerns and minimize risks with careful planning.

Listen as our authoritative panel addresses critical 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 impact borrowers' and lenders' strategies when a mezzanine loan defaults.

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 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?