What is Property Tax Forfeiture? Property tax forfeiture is a process where the state takes ownership of real property if property taxes are not paid.  When property taxes are not paid in the year due, the taxes become delinquent as of January 1 of the following year.  Those holding liens… Read more »

Various provisions in the new mortgage rules issued by the Consumer Financial Protection Bureau in January 2013 and May 2013 affected small creditors. Acknowledging that small creditors are a significant part of the mortgage industry, the CFPB has issued a final rule that revises the definition of… Read more »

When a lender learns that a borrower has passed away, in certain circumstances, the lender may assert a “claim” against the assets in the deceased borrower’s estate.  Simply, this is a way for a lender to be paid on the outstanding obligation of a decedent/borrower. In… Read more »

Our office often works with our financial institution clients to determine not only how to collect on a judgment, but also when to collect on a judgment. There is no requirement to immediately undergo collections upon judgment entry. Judgments in all states remain valid for a certain amount of time.… Read more »

The Dodd-Frank Wall Street Reform Act and Consumer Protection Act (“Dodd-Frank Act”) amended both the Real Estate Settlement Procedures Act (“RESPA”), which is implemented by Regulation X, and the Truth in Lending Act (“TILA”), which is implemented by Regulation… Read more »

           Our firm serves as the outside in-house legal counsel for many financial institution clients. In that capacity, we receive calls and emails from our clients every day with questions relating to all aspects of banking.  Sometimes,… Read more »

Powers of Attorney – New Statutory Short Form Power of Attorney Effective January 1, 2014  This is a follow-up to our Advisor article sent on June 18, 2013, “Powers of Attorney – What You Need to Know About the Current Requirements and Upcoming Changes.” The full… Read more »

The past several years can provide valuable lessons to lenders in the unfortunate event that current or new loans end up in foreclosure. A proactive eye towards certain aspects of the lending transaction can provide the key to a successful foreclosure. Therefore, before securing a loan with a… Read more »

2010 Amendments to the Uniform Commercial Code go into effect Monday, July 1, 2013.   We are sending this as a follow-up to our The Advisor article sent on April 16, 2013, “What to Know about Filing UCC Financing Statements under the 2010 Amendments.” The full article can be… Read more »

The 2013 Minnesota Legislature passed legislation modifying and clarifying the Minnesota Statutory Short Form Power of Attorney (“SSF POA”), which is found in Minnesota Statutes § 523.23. This article will focus on what a power of attorney can and cannot do, the four parts of the… Read more »

We often receive calls from our financial institution clients when they are served with a garnishment (most often from a private-party creditor), or a levy from a taxing authority (most often from the IRS).  The most common question we receive in this scenario is whether the financial… Read more »

In 2010, a review committee finalized several changes (“2010 Amendments”) to the Uniform Commercial Code’s Revised Article 9.  The 2010 Amendments have been enacted by the State of Minnesota, and will go into effect on July 1, 2013.  Although only eight other states have… Read more »

As many banking institutions continue to react to the effects of the economy, many are faced with the need to foreclose commercial mortgages originated under the U.S. Small Business Administration (“SBA”) 504 loan program. In addition to standard banking practice and applicable state… Read more »

Precise drafting of loan documents is essential when documenting a loan. Clear and unambiguous loan documents accurately reflect the agreement of the parties and protect both lenders and borrowers. When issues arise relative to the terms of the underlying loan documents, failure to clearly… Read more »

Many lenders are aware that Wisconsin law requires them to obtain a marital purpose statement when making a loan to a Wisconsin resident.  However, there is a significant amount of uncertainty in determining how the marital purpose statement should be worded, how it can be documented, who… Read more »

Nothing is more disheartening than to enter OREO, post-foreclosure, and realize that a borrower has damaged the property or removed items such as furnaces, water heaters, sinks, cabinets, flooring, carpeting, light fixtures, toilets, windows, landscaping, and trees. The removal of these items can… Read more »

When a borrower files for relief under Chapter 7 of the United States Bankruptcy Code, the borrower is typically entitled to a discharge of the borrower’s debts. One of the exceptions to discharge occurs when the creditor and borrower voluntarily agree to enter into a reaffirmation agreement.… Read more »

When an event of default occurs with respect to a loan that is secured by a mortgage encumbering real estate, there are a number of issues that should be investigated by the bank prior to its acquisition of the real estate (“OREO”). The bank’s due diligence related to such issues… Read more »

In our most recent edition of The Advisor, we discussed the process for a lender to obtain and perfect a security interest in membership units/interests in a limited liability company (“LLC”), as collateral for a loan. In this edition, we will address the lender’s rights to… Read more »

A limited liability company (“LLC”) is one of the most commonly chosen entity structures used by new businesses today. LLCs are owned by its members, who hold either membership units or membership interests. Membership units/interests consist of both financial and governance rights,… Read more »

The question is often raised: “After sending a default notice demanding payment, can a lender accept a partial payment?” The easy answer is that a lender can, of course, accept a partial payment. However, there are potential ramifications of accepting a partial payment after making… Read more »

In our recent Garnishment Update, which was circulated on March 30, 2010, we discussed the issues related to garnishments on joint accounts in light of the case of Enright v. Lehman. On April 22, 2010, the Minnesota Supreme Court issued a decision in the case of Savig v. First National Bank of… Read more »

The Minnesota state legislature made a number of modifications to the garnishment section of the Minnesota Statutes. The legislature intended to make the garnishment process easier and more understandable for the creditor, debtor, and garnishee. In doing so, several changes were made to the… Read more »