Publications

Section Newsletter Articles on Banks and Financial Institutions

Collection counsel: Don’t celebrate too soon (The citation set-off and priority rules) By Paul B. Porvaznik Commercial Banking, Collections, and Bankruptcy, January 2014 Creditor’s counsel should be leery of Section 12-708’s set-off provision and the caselaw’s expansive application of a third-party’s set-off rights.
Discovery rule saves plaintiffs’ fraud claims against investment firm (IL – 2d Dist) By Paul B. Porvaznik Commercial Banking, Collections, and Bankruptcy, January 2014 Rasgaitis v. Waterstone Financial Group, Inc. has real value because of its thorough discussion of agency law.
The leaky “pay-if-paid” clause: A fluid story of the “if’s” and “when’s” of contingent payments By Nicholas J. Johnson Commercial Banking, Collections, and Bankruptcy, January 2013 The application of “pay-if-paid” versus a “pay-when-paid” clause can have drastic and far-reaching implications. It is thus essential that these disparate clauses are fully understood, because the impact of such clauses might be the difference between a contractor floating to safety or drowning in debt.
Putting the short into short sales By Philip J. Vacco Commercial Banking, Collections, and Bankruptcy, January 2013 Effective November 1, 2012, Fannie Mae’s and Freddie Mac’s new and improved preforeclosure sales program will officially be known as “Standard Short Sale/HAFA II.
Guarantor beware By Jerry D. Cavanaugh Commercial Banking, Collections, and Bankruptcy, September 2012 A summary of the recent case of TH Davidson and Company vs. EIDOLA Concrete and Thomas Kilbride.
Lender liability is alive and well: Bank assessed compensatory and punitive damages for mishandling a Construction Loan By Michael L. Weissman Commercial Banking, Collections, and Bankruptcy, September 2012 The case of Bank of America, N.A. v. Sanjiv Narula, et al. points out the need for lenders to deal fairly with borrowers, especially when a fiduciary relationship has been established.
Piercing the corporate veil in Illinois: A tool for lenders By Michael L. Weissman Commercial Banking, Collections, and Bankruptcy, September 2012 In Wachovia Securities, LLC v. Banco Panamericano, the Seventh Circuit Court of Appeals considered what must be established under Illinois law to impose liability on corporate insiders for indebtedness incurred by the corporation.
Banks are still making loans By Lewis F. Matuszewich Commercial Banking, Collections, and Bankruptcy, February 2012 Utilizing the United States Small Business Administration loan programs, in the fiscal year running from October 1, 2010 through September 30, 2011, 222 different lenders had SBA loans approved for business within Illinois.
Banks are debtors too—Attorneys beware By Michael McKenzie Commercial Banking, Collections, and Bankruptcy, July 2011 When problem banks go into FDIC receivership, the loss exposure for both billed and unbilled time increases exponentially, and the probability of recovering legal fees from an FDIC receivership are practically nil. There are several steps attorneys can take, however, to minimize loss, mitigate risk, and preserve the client relationship.
Litigating disputes with the FDIC: Issues facing officers and directors of failed banks By Rebecca L. Dandy Federal Civil Practice, June 2011 A look at some of the issues former officers and directors now find themselves faced with in the midst of litigation where the FDIC is seeking to hold them personally liable for the losses of failed banks.
Red Flags Rule enforcement begins By J. Joseph McCoy Commercial Banking, Collections, and Bankruptcy, June 2011 An overview of the basic principles of the Red Flags Rule and how clients may be affected by it.
Foreclosure mediation met with mixed feelings By Whitney Rhew Alternative Dispute Resolution, April 2011 It appears that efficient programs with “quick” answers for borrowers and high participation rates will be most successful.
The bucks start here: How national banks have payment priority over judgment creditors when processing collection efforts By Michael G. Cortina Commercial Banking, Collections, and Bankruptcy, February 2011 The Illinois Banking Act, which is relevant state law, does not apply to nationally chartered banks regarding the charging and collection of fees to the bank’s customer’s account because of federal law preemption.
Mortgage foreclosures: In rem or quasi in rem? The distinction that makes a difference By Robert Handley Commercial Banking, Collections, and Bankruptcy, February 2011 In this recent case the Illinois Supreme Court reversed the appellate court and affirmed the circuit court, thereby dismissing the foreclosure action filed by ABN AMRO Mortgage Group.
Court says broker may simply rely on the face of attachment order By John T. Hundley Commercial Banking, Collections, and Bankruptcy, August 2009 In Hicks v. Midwest Transit, Inc., the court held that a financial institution served with an attachment order was required only to determine that the order was “regular on its face” – and not to explore validity questions which could only be answered from extraneous sources.
Loan Modification Agreement Corporate Law Departments, February 2009 The following sample Loan Modification Agreement has been prepared for educational and information purposes only.
Rural lender advantage By Lewis F. Matuszewich Commercial Banking, Collections, and Bankruptcy, January 2009 The United States Small Business Administration has introduced a modification of one of its loan programs, specifically designed to foster economic development in rural areas.
Bank directors on the hot seat By Kenneth Dobbs Commercial Banking, Collections, and Bankruptcy, October 2008 The last 15 years have been smooth sailing for banks and their directors. Borrowers paid loans, earnings remained strong, and bank failures were almost non-existent. Recently, however, matters became choppy as borrowers defaulted, earnings plummeted, and a few banks began to fail.
“I know something you don’t know”—What duty does a creditor’s attorney have when the attorney thinks the debtor is lying to the bankruptcy court? By Lawrence O. Taliana Commercial Banking, Collections, and Bankruptcy, August 2008 Most attorneys know that putting a client on the stand who plans to lie (just like murder or relating the depictions or accounts of a major league baseball game without the express written consent of the commissioner) is a bad thing.
Bank Directors on the hot seat By Craig McCrohon Corporate Law Departments, May 2008 The last 15 years have been smooth sailing for banks and their directors. Borrowers paid loans, earnings remained strong, and bank failures were almost non-existent.
The importance of being thorough By Michael G. Cortina Commercial Banking, Collections, and Bankruptcy, November 2007 Banks are usually the first target for creditor’s rights attorneys who are seeking to collect on a judgment.
Bill status report By Stephen Olson Commercial Banking, Collections, and Bankruptcy, October 2007 Recent legislation of interest.
Current topics in bank examinations By Michael A. Stanfa Commercial Banking, Collections, and Bankruptcy, July 2007 This article is a summary version of a one of the presentations at the Banking Law Seminar put on by the ISBA.
Conference Series: An informed discussion of financial access for immigrants—Part II By Steven W. Kuehl Commercial Banking, Collections, and Bankruptcy, September 2006 The first part of this series appeared in the prior issue of Commercial, Banking & Bankruptcy Law, and this material will be concluded in the next issue of the newsletter.
Conference Series: An informed discussion of financial access for immigrants—Part 1 By Steven W. Kuehl Commercial Banking, Collections, and Bankruptcy, August 2006 During the past two years, the Consumer and Community Affairs (CCA) division of the Federal Reserve Bank of Chicago held a series of conferences focused on increasing access to financial services for immigrants.
Federal Grand Jury subpoenas: Forcing banks to work for free By Michael G. Cortina Commercial Banking, Collections, and Bankruptcy, August 2006 From time to time, banks will be served with a subpoena to produce documents for a federal grand jury investigation.
Bill status report (Section Council action as of September 13, 2003) Commercial Banking, Collections, and Bankruptcy, December 2003 Bill Sponsor Short Digest Synopsis Section Council Position
New powers for Illinois banks By Sandra M. Traicoff and Tyler D. Petersen Commercial Banking, Collections, and Bankruptcy, March 2000 Recent legislation at both the state and federal levels has expanded the scope of powers authorized for Illinois banks.
Confidentiality of bank examination information expanded By Jerry D. Cavanaugh and Bradley W. Small Commercial Banking, Collections, and Bankruptcy, December 1999 Recent legislation signed by Governor Ryan (Senate Bill 447; Public Act 91-201), effective January 1, 2000, expands certain confidentiality provisions protecting Illinois banks and their customers.