Publications

Section Newsletter Articles on Banks and Financial Institutions

Confession of judgment clause valid in note with variable interest rate By Kevin J. Stine Commercial Banking, Collections, and Bankruptcy, October 2016 On August 26, the First District Appellate Court issued an opinion in Cole v. Davis, concluding that a confession of judgment clause with a fixed principal amount due and a variable interest rate is not legally insufficient under Illinois case law interpreting the statutory right to confess judgment.
Serving a dissolved company: Isfan v. Longwood Tower By Hon. Daniel T. Gillespie and Daniel Burley Civil Practice and Procedure, September 2016 How does a party serve a dissolved entity? It depends on whether the company is a limited liability entity or a corporation. The distinction is important, as improperly serving a dissolved entity can scuttle a case.
Lenders and contaminated property By Eugene P. Schmittgens, Jr. Business Advice and Financial Planning, May 2016 Establishing proper safeguards and with a property with a viable end-use, contaminated properties can be profitable for all parties.
Recent cases By Michael L. Weissman Commercial Banking, Collections, and Bankruptcy, March 2016 Recent cases of interest.
Banker forges payoff letter to defraud bank and MERS no help By Erica Crohn Minchella Commercial Banking, Collections, and Bankruptcy, February 2016 In the case of M&T Bank v. Mallinckrodt, MERS provided a safe haven for fraudulent behavior.
Recent cases By Michael Weissman Commercial Banking, Collections, and Bankruptcy, February 2016 Recent decisions of interest.
Banker forges payoff letter to defraud bank and MERS no help By Erica Crohn Minchella Real Estate Law, January 2016 A look at M&T Bank v. Mallinckrodt.
Case summaries By Robert T. Bruegge Commercial Banking, Collections, and Bankruptcy, October 2015 Recent bankruptcy cases of interest.
Reviving dormant judgments in Illinois By Michael J. Gilmartin Commercial Banking, Collections, and Bankruptcy, June 2015 If you are a banker or an attorney representing banks, now is an excellent time to revisit your drawer or spreadsheet of judgments to see if they are worth more than the paper they are printed on.
Dragnet clauses or bust By Thomas E. Howard Commercial Banking, Collections, and Bankruptcy, March 2015 To avoid possible errors, every security agreement must contain a dragnet clause to allow for subsequent modifications or additional extensions of credit by the lender to be properly secured.
Attorneys beware! By Jeffrey G. Sorenson Commercial Banking, Collections, and Bankruptcy, February 2015 The case of Heartland Bank and Trust Company v. The Leiter Group, Attorneys and Counselors Professional Corporation is warning for all attorneys who accept payments from a client in financial distress.
Banks facing greater liability under expansions of both 9(g)(3) and 9(g)(4) of the Condominium Property Act By Stephen J. Butler Commercial Banking, Collections, and Bankruptcy, October 2014 A discussion of both the recent amendatory veto to Senate Bill 2664, and the holding in 1010 Lake Shore Association v. Deutsche Bank National Trust Company.
Can lenders collect rents without possession? Recent First District opinion calls well-settled answer “no” into question By Thomas M. Lombardo Commercial Banking, Collections, and Bankruptcy, October 2014 One of the first things someone learns when they get involved in commercial real estate foreclosures is that a lender cannot enforce an assignment of rents unless it first obtains some form of “possession.” The First District, perhaps unintentionally, called this well-settled possession requirement into question on July 23, 2014 with its decision in Urban Partnership Bank v. Winchester-Wolcott, LLC, et al.
Law firm’s negligence suit against bank defeated by account agreement and UCC Article 4 (IL Law) By Paul B. Porvaznik Commercial Banking, Collections, and Bankruptcy, April 2014 In July 2013, the Third District appeals court affirmed dismissal of a law firm’s negligence suit against a bank that charged back the firm’s account after a $350,000 check deposited by the firm turned out to be counterfeit.
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.