CHAPTER 1 Introduction
§ 1.syn Synopsis to Chapter 1: Introduction
§ 1.01 Definitions
§ 1.02 Legal Foundation
§ 1.03 Types of Collateral
§ 1.04 Economic Basis
§ 1.05 Drafting Considerations
Appendix 1-A Model Forms
CHAPTER 2 Grant of Credit
§ 2.syn Synopsis to Chapter 2: Grant of Credit
§ 2.01 Introduction
§ 2.02 Overview of the Credit Granting Process
§ 2.03 Risks in the Credit Granting Process
§ 2.04 Desire for Certainty in the Credit Granting Process
§ 2.05 Credit Judgments, Documents, and Legal Analysis
§ 2.06 The Lender's Dilemma
§ 2.07 The Commitment or Intent Letter
§ 2.08 Factors to Be Considered in Preparing an Intent or Commitment Letter
§ 2.09 Expense Reimbursement
§ 2.10 What Should the Commitment or Intent Letter Include?
§ 2.11 Disclosure
§ 2.12 Oral or Written Communication of Loan Approval
§ 2.13 Breach of the Obligation to Lend
§ 2.14 Case Law Development
§ 2.15 Post-Closing Credit Determinations and Communications
§ 2.16 Credit Rejection
§ 2.17 The "Legal Profile" Form
§ 2.18 Letter Forms
Appendix 2-A Model Forms
CHAPTER 3 UCC Article 9
§ 3.syn Synopsis to Chapter 3: UCC Article 9
§ 3.01 Introduction
§ 3.02 Background of Article 9
§ 3.03 Coverage of Article 9
§ 3.04 Creation and Perfection of Security Interests
§ 3.05 Priorities
§ 3.06 Filing and Searches
§ 3.07 Default and Enforcement
§ 3.08 Multistate Transactions
§ 3.09 Special Areas
§ 3.10 Forms
Synopsis
Appendix 3 UCC Article 9 (Pre-Revision)
Appendix 3A: Model Forms
Appendix 3B: UCC REVISED ARTICLE 9
CHAPTER 4 The UCC Search and Filing
§ 4.syn Synopsis to Chapter 4: The UCC Search and Filing
§ 4.01 Introduction
§ 4.02 Perfection of Security Interests by Filing
§ 4.03 Obligations of Filing Authority
§ 4.04 The Search for Security Interests Perfected by Filing
§ 4.05 What a Search Will Show
§ 4.06 What a Search Will Not Show
§ 4.07 The Transition Period
§ 4.08 Conclusion
CHAPTER 4A Lending in Indian Country
§ 4A.syn Synopsis to Chapter 4A: Lending in Indian Country
§ 4A.01 Introduction
§ 4A.02 Definitions and Key Concepts
§ 4A.03 Basic Legal Principles
§ 4A.04 Borrowers in Indian Country
§ 4A.05 Collateral and Remedies
§ 4A.06 Uniform Commercial Code
§ 4A.07 Jurisdiction and Dispute Resolution
§ 4A.08 Sources for Further Research
Appendix 4A Model Forms
CHAPTER 4B UCC Article 9 Insurance
§ 4B.syn Synopsis to Chapter 4B: UCC Article 9 Insurance
§ 4B.01 The Why and When of UCC Insurance
§ 4B.02 The Lender's Policy
§ 4B.03 Utility of UCC Insurance
§ 4B.04 Law Firm Risk and UCC Insurance
Appendix 4B: Model Forms
CHAPTER 5 Motor Vehicle Security
§ 5.syn Synopsis to Chapter 5: Motor Vehicle Security
§ 5.01 Introduction
§ 5.02 Governing Law--State Law
§ 5.03 Governing Law--Retail Installment Sales Acts
§ 5.04 Governing Law--Federal Law
§ 5.05 Motor Vehicle Leases
§ 5.06 Financing Plans--Dealer and Factory
§ 5.07 Dealer Plans--Wholesale Financing
§ 5.08 Factory Plans
Appendix 5-A Model Forms
CHAPTER 6 Intercreditor Agreements
§ 6.syn Synopsis to Chapter 6: Intercreditor Agreements
§ 6.01 Introduction
§ 6.02 Definition
§ 6.03 Statutory Basis
§ 6.04 Practical and Legal Considerations
§ 6.05 Intercreditor Agreement Provisions
§ 6.06 Use of Intercreditor Agreement to Restrict the Rights of a Junior Lienor
Appendix 6-A Model Forms
CHAPTER 7 Claims By and Against the United States
§ 7.syn Synopsis to Chapter 7: Claims By and Against the United States
§ 7.01 Introduction
§ 7.02 Government Contracts
§ 7.03 Tax Refund Claims
§ 7.04 The Federal Tax Lien
§ 7.05 The ERISA Lien
§ 7.06 Liability for Unpaid Withholding Taxes
§ 7.07 Penalty for Taxes Evaded
Appendix 7-A Model Forms
CHAPTER 8 Conflicting Real Estate Interests
§ 8.syn Synopsis to Chapter 8: Conflicting Real Estate Interests
§ 8.01 Introduction
§ 8.02 Fixtures Financing
§ 8.03 Problems With Non-Fixture Real Property Collateral
§ 8.04 Hybrid Transactions
Appendix 8-A Model Forms
CHAPTER 9 Real Estate Aspects of Asset-Based Financing
§ 9.syn Synopsis to Chapter 9: Real Estate Aspects of Asset-Based Financing
§ 9.01 Introduction
§ 9.02 Forms of Instruments
§ 9.03 Title Insurance
§ 9.04 Formalities of Perfecting Mortgages and Deeds of Trust
§ 9.05 Recordation Taxes
§ 9.06 Priorities
§ 9.07 Usury
§ 9.08 Due-On-Sale Clauses
§ 9.09 Equity of Redemption
§ 9.10 Remedies
§ 9.11 Bankruptcy Planning and Effects in Real Estate Financing
Appendix 9-A Model Forms
CHAPTER 10 Joint Loans and Participations
§ 10.syn Synopsis to Chapter 10: Joint Loans and Participations
§ 10.01 Introduction
§ 10.02 Participations
§ 10.03 Joint Loans
§ 10.04 Comparison of Participations and Joint Loans
Appendix 10-A Model Forms
CHAPTER 11 Guaranties
§ 11.syn Synopsis to Chapter 11: Guaranties
§ 11.01 Introduction
§ 11.02 Surety and Guaranty
§ 11.03 Types of Guaranty
§ 11.04 Formation and Interpretation of the Contract of Guaranty
§ 11.05 Validity of Corporate Action
§ 11.06 Release or Discharge of Guarantor
§ 11.07 The Guaranty as a Fraudulent Conveyance
§ 11.08 Security for the Guaranty
§ 11.09 Enforcement of the Guaranty
§ 11.10 Guarantor's Rights
§ 11.11 Government Guaranties
§ 11.12 Checklist and Hints for Drafting
Appendix 11-A Model Forms
CHAPTER 12 Letters of Credit
§ 12.syn Synopsis to Chapter 12: Letters of Credit
§ 12.01 Introduction
§ 12.02 Classification
§ 12.03 Parties and Formalities
§ 12.04 Issuer's Obligation to Make Payment
§ 12.05 Conformity of Documents to Letter of Credit
§ 12.06 Issuer's Right to Reimbursement
§ 12.07 Comparison of Letter of Credit and Guaranty
§ 12.08 Rights of Subrogation
§ 12.09 Transfer, Assignment and Security Interest in Proceeds
§ 12.10 Injunctions and Temporary Restraining Orders Against Payment by Issuer
§ 12.11 Bankruptcy Code Considerations
§ 12.12 International Standby Practices (ISP98)
Appendix 12-A Model Forms
CHAPTER 13 Debt Subordination
§ 13.syn Synopsis to Chapter 13: Debt Subordination
§ 13.01 Introduction
§ 13.02 Debt Subordinations in General
§ 13.03 Enforcement of Subordination Agreements
§ 13.04 Drafting Considerations
§ 13.05 Perfecting the Subordination
Appendix 13-A Model Forms
CHAPTER 14 Interest and Usury
§ 14.syn Synopsis to Chapter 14: Interest and Usury
§ 14.01 Introduction
§ 14.02 Methods of Computation of Interest
§ 14.03 Prepayment Rebate
§ 14.04 Usury
§ 14.05 Principal
Appendix 14-A Model Forms
CHAPTER 15 Corporate Formalities
§ 15.syn Synopsis to Chapter 15: Corporate Formalities
§ 15.01 Introduction
§ 15.02 Corporate Existence and Organization
§ 15.03 Corporate Good Standing
§ 15.04 Corporate Power
§ 15.05 Corporate Authority
§ 15.06 Government Approval
§ 15.07 Financing Restrictions
§ 15.08 Attorney Opinions
§ 15.09 Response to Audit Letters and Credit Inquiries
§ 15.10 Acquisition Loans
§ 15.11 Not-for-Profit Corporations
§ 15.12 Municipal Corporations
§ 15.13 Noncorporate Entities
§ 15.14 Private Trusts and Estates
§ 15.15 Proprietorships
§ 15.16 Attorneys-in-Fact
Appendix 15-A: Model Forms
CHAPTER 15A Third Party Legal Opinions
§ 15A.syn Synopsis to Chapter 15A: Third Party Legal Opinions
§ 15A.01 Introduction
§ 15A.02 Preliminary Considerations
§ 15A.03 Structure of Opinion Letters
§ 15A.04 Opinion Support: Factual Examination, Assumptions and Back-Up Opinions
§ 15A.05 Substantive Opinions
CHAPTER 16 Bankruptcy
§ 16.syn Synopsis to Chapter 16: Bankruptcy
§ 16.01 Introduction
§ 16.02 A Checklist for the Secured Lender
§ 16.03 A Checklist for the Unsecured Creditor
§ 16.04 Overview of Proceedings in Bankruptcy
§ 16.05 Power of the Bankruptcy Court, Jurisdiction, Venue and Related Matters
§ 16.06 Professionals in Bankruptcy Proceedings
§ 16.07 Initiation of the Bankruptcy Process--Filing of the Petition
§ 16.08 The Beginning of a Bankruptcy Case
§ 16.09 The Automatic Stay
§ 16.10 Relief from the Automatic Stay
§ 16.11 Sales of the Business Through Section 363
§ 16.12 Avoidance Powers
§ 16.13 Executory Contracts and Unexpired Leases
§ 16.14 Claims
§ 16.15 Substantive Consolidation
§ 16.16 Discharge
§ 16.17 Setoff and Recoupment
§ 16.18 Turnover of Property of the Estate
§ 16.19 Chapter 11 Reorganization
§ 16.20 Chapter 7
§ 16.21 Chapter 13
§ 16.22 Chapter 12 Family Farmers
Appendix 16-A Model Forms
CHAPTER 16A Amendments, Waivers and Forbearance Agreements
§ 16A.syn Synopsis to Chapter 16A: Amendments, Waivers and Forbearance Agreements
§ 16A.01 Introduction
§ 16A.02 Definition of a Workout - Lender Internal Risk Rating Process
§ 16A.03 Amendments to Credit Agreements
§ 16A.04 Waivers of Defaults to Credit Agreements
§ 16A.05 Reservation of Rights Letter
§ 16A.06 Workout Principles
§ 16A.07 The Secured Creditor's Position in a Workout
§ 16A.08 Pre-Workout Agreements
§ 16A.09 Forbearance Agreements
§ 16A.10 Lender Liability Considerations
§ 16A.11 Fiduciary Duty of the Debtor's Directors
Appendix 16A-A Model Forms
CHAPTER 16B Financing in Chapter 11: Use of Cash Collateral and Debtor in Possession Financing
§ 16B.syn Synopsis to Chapter 16B: Financing in Chapter 11: Use of Cash Collateral and Debtor in Possession Financing
§ 16B.01 Introduction
§ 16B.02 Use of Cash Collateral
§ 16B.03 Debtor In Possession Financing
§ 16B.04 Exit Financing
Appendix 16B-A Model Forms
CHAPTER 16C Alternatives to Bankruptcy
§ 16C.syn Synopsis to Chapter 16C: Alternatives to Bankruptcy
§ 16C.01 Introduction
§ 16C.02 Receiverships
§ 16C.03 Assignments for the Benefit of Creditors
§ 16C.04 Secured Party Sales
§ 16C.05 Voluntary Dissolution
Appendix 16C-A Model Forms
CHAPTER 17 Lender Remedies
§ 17.syn Synopsis to Chapter 17: Lender Remedies
§ 17.01 Introduction
§ 17.02 Preliminary Review
§ 17.03 Voluntary Workouts
§ 17.04 Enforcing The Debt
§ 17.05 Liquidating The Collateral
§ 17.06 Guarantors
§ 17.07 Rights of Other Creditors
§ 17.08 Lender's Damages
§ 17.09 Borrower's Defenses
§ 17.10 Special Problems
§ 17.11 Bankruptcy of the Borrower
Appendix 17-A Model Forms
CHAPTER 17A Alternative Dispute Resolution
§ 17A.syn Synopsis to Chapter 17A: Alternative Dispute Resolution
§ 17A.01 Introduction
§ 17A.02 Negotiation
§ 17A.03 Mediation
§ 17A.04 Arbitration
§ 17A.05 Opinions
§ 17A.06 Joint Loans and Participations
CHAPTER 18 Consumer Law Issues
§ 18.syn Synopsis to Chapter 18: Consumer Law Issues
§ 18.01 Introduction
§ 18.02 Fair Debt Collection Practices Act
§ 18.03 Fair Credit Reporting Act
§ 18.04 Right to Financial Privacy Act of 1978
§ 18.05 Interstate Land Sales Full Disclosure Act
§ 18.06 Preservation of Consumers' Claim and Defenses Rule
§ 18.07 Real Estate Settlement Procedures Act
§ 18.08 Fair Housing Act
§ 18.09 Consumer Leasing Act
§ 18.10 Truth in Lending Act
§ 18.11 Equal Credit Opportunity Act
§ 18.12 Credit Practices Rule
§ 18.13 Other Regulatory Considerations
Chapter 19 RESERVED
CHAPTER 20 Bulk Sales
§ 20.syn Synopsis to Chapter 20: Bulk Sales
§ 20.01 Introduction
§ 20.02 Scope of Bulk Sale Law
§ 20.03 Conducting the Bulk Sale
§ 20.04 Results of Noncompliance
§ 20.05 Auction Sales
§ 20.06 Tax-Related Provisions
Appendix 20-A Model Forms
CHAPTER 21 Fraudulent Transfers
§ 21.syn Synopsis to Chapter 21: Fraudulent Transfers
§ 21.01 Introduction
§ 21.02 Fraudulent Transfer Statutes
§ 21.03 Legal Elements of a Fraudulent Transfer
§ 21.04 Other Issues
§ 21.05 Evaluation of Special Problem Transactions
Chapters 22through 25 RESERVED
< CHAPTER 26 Accounts Receivable Financing
§ 26.syn Synopsis to Chapter 26: Accounts Receivable Financing
§ 26.01 Introduction
§ 26.02 Characteristics of the Transaction
§ 26.03 Types and Characteristics of Receivable Collateral
§ 26.04 Third Party Relationships
§ 26.05 Documentation
§ 26.06 Operating Risks and Problems
§ 26.07 Lender Remedies
§ 26.08 Bankruptcy Considerations
Appendix 26-A Model Forms
CHAPTER 27 Factoring
§ 27.syn Synopsis to Chapter 27: Factoring
§ 27.01 Introduction
§ 27.02 Characteristics of the Transaction
§ 27.03 Types and Characteristics of Receivables Purchased
§ 27.04 Third Party Relationships
§ 27.05 Documentation
§ 27.06 Operating Risks and Problems
§ 27.07 Factor Remedies
§ 27.08 Bankruptcy Considerations
§ 27.09 International Factoring
§ 27.10 Convention on International Factoring
Appendix 27-A Model Forms
CHAPTER 28 Inventory Financing
§ 28.syn Synopsis to Chapter 28: Inventory Financing
§ 28.01 Introduction
§ 28.02 Creation and Perfection of a Security Interest
§ 28.03 Priorities and Conflicting Interests
§ 28.04 Troubled Loans--Workouts and Liquidation
§ 28.05 Bankruptcy Considerations
§ 28.06 Documentation
Appendix 28-A Model Forms
CHAPTER 29 Financing the Leveraged Buyout
§ 29.syn Synopsis to Chapter 29: Financing the Leveraged Buyout
§ 29.01 Introduction
§ 29.02 Types of LBO Transactions
§ 29.03 Preliminary Legal Considerations
§ 29.04 Structuring the LBO Secured Loan
§ 29.05 Case Study of an LBO
§ 29.06 Documentation
Appendix 29-A Model Forms
CHAPTER 30 Agricultural Financing
§ 30.syn Synopsis to Chapter 30: Agricultural Financing
§ 30.01 Introduction
§ 30.02 Creation of the Security Interest in Agricultural Collateral
§ 30.03 Perfection of the Security Interest in Agricultural Collateral
§ 30.04 Priority Issues for Agricultural Collateral
§ 30.05 Enforcing Security Interests in Agricultural Collateral
§ 30.06 Financing the Meat Packer
§ 30.07 Perishable Agricultural Commodities
Appendix 30-A Model Forms
CHAPTER 31 Intellectual Property Financing
§ 31.syn Synopsis to Chapter 31: Intellectual Property Financing
§ 31.01 Introduction
§ 31.02 Uniform Commercial Code and Its Relation to Intellectual Property
§ 31.03 Patents
§ 31.04 Trade Secrets
§ 31.05 Trademarks
§ 31.06 Copyrights
§ 31.07 License Agreements
§ 31.08 Special Problems of Equipment and Inventory
§ 31.09 Mask Works
Appendix 31-A Model Forms
Appendix 31-B Checklists
CHAPTER 32 Equipment Financing
§ 32.syn Synopsis to Chapter 32: Equipment Financing
§ 32.01 Introduction
§ 32.02 Definition Of Transactions
§ 32.03 Basic Considerations for Structuring An Equipment Financing Transaction
§ 32.04 Basic Documentation For Equipment Financing
§ 32.05 Additional Documentation For Loans
§ 32.06 Key Provisions Of Security Agreements
§ 32.07 Considerations Regarding Where to File the Financing Statement Covering Equipment
§ 32.08 Equipment Trust Financing
Appendix 32-A: Model Forms
Untitled
CHAPTER 33 Chattel Paper Financing
§ 33.syn Synopsis to Chapter 33: Chattel Paper Financing
§ 33.01 Introduction
§ 33.02 Types of Chattel Paper
§ 33.03 Coverage Of Chattel Paper Financing by Article 9
§ 33.04 Structuring the Chattel Paper Financing Transaction
§ 33.05 Problem Areas--Definition of Chattel Paper
§ 33.06 Problem Areas--The Underlying Transaction
§ 33.07 Problem Areas--The Financing Transaction
Appendix 33-A Model Forms
Appendix 33-A Checklist for Documenting the Chattel Paper Financing Transaction
CHAPTER 34 Equipment Leasing
§ 34.syn Synopsis to Chapter 34: Equipment Leasing
§ 34.01 Introduction
§ 34.02 What Is a Finance Lease?--True Leases and Leases Intended as Security
§ 34.03 Application of UCC Article 9 to Leases Intended as Security
§ 34.04 Law Governing True Lease Remedies
§ 34.05 Article 2A--Uniform Leasing Law
§ 34.06 Assignment of Equipment Leases--Leases as Collateral
§ 34.07 Analysis of Typical Finance Lease Terms and Provisions
§ 34.08 Leasing Transactional Documents
Appendix 34-A: Model Forms
Appendix 34-B Checklist For Finance Leasing Transactions
CHAPTER 35 Tax-Oriented Leasing
§ 35.syn Synopsis to Chapter 35: Tax-Oriented Leasing
§ 35.01 Introduction
§ 35.02 Parties
§ 35.03 Documents
§ 35.04 Tax Framework
§ 35.05 Tax Benefits
§ 35.06 Special Provisions
Appendix 35-A Model Forms
CHAPTER 36 Maritime Financing
§ 36.syn Synopsis to Chapter 36: Maritime Financing
§ 36.01 Introduction
§ 36.02 Structure of Ship Financing Transaction
§ 36.03 Regulatory Considerations--Citizenship Restrictions
§ 36.04 Documentation of a Ship Financing Transaction
§ 36.05 Operating Risks
§ 36.06 Defaults and Remedies
§ 36.07 Title XI Financing
Appendix 36-A Model Forms
CHAPTER 37 Aircraft Financing
§ 37.syn Synopsis to Chapter 37: Aircraft Financing
§ 37.01 Introduction
§ 37.02 Governing Law
§ 37.03 Nature of the FAA Recording System
§ 37.04 Specialized Documentation Provisions
Appendix 37-A Model Forms
CHAPTER 38 Insurance Considerations
§ 38.syn Synopsis to Chapter 38: Insurance Considerations
§ 38.01 Introduction
§ 38.02 Basic Concepts
§ 38.03 Protection of the Lender's Interest in Secured Assets
§ 38.04 Protection of the Lender
§ 38.05 Insurance Premium Financing
Appendix 38-A Model Forms
CHAPTER 39 Interests in Borrowers' Depository Accounts
§ 39.syn Synopsis to Chapter 39: Interests in Borrowers' Depository Accounts
§ 39.01 Introduction
§ 39.02 Bank Interests in Depository Accounts
§ 39.03 Conflicts Between Banks and Third-Party Claims in Depository Accounts
§ 39.04 Check List for Set-Off
§ 39.05 Certificates of Deposit
Appendix 39-A Model Forms
Chapters 40 through 45 RESERVED
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