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Category Archives: Collateral

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Is eRecording Secure? Recognizing the Risks, Deflating the Myths

Posted in Collateral, Kentucky Law
When it comes to the electronic recording and notarization of documents, Kentucky has historically been on the outside looking in, while neighboring states have embraced the efficiency and cost-saving benefits of eRecording. But that may soon change: Kentucky is on the verge of passing legislation that would adopt the key provisions of the Uniform Real… Continue Reading

Kentucky To Consider E-Recording Reforms

Posted in Collateral, Kentucky Law
The past two decades have seen a paradigm shift in the way states sign, record, and notarize documents. Once hindered by paper document and “wet” signature requirements, the modern recordation process in many states has evolved to allow recording of real estate records electronically. States first began adopting laws to equate “e-signatures” with pen-and-paper signatures… Continue Reading

Lis Pendens Saves Equitable Mortgage

Posted in Collateral, Foreclosure, mortgage
The Kentucky Court of Appeals recently affirmed in Brooks v. J.P.Morgan Chase Bank, N.A. that an equitable mortgage established in litigation has priority over a pendente lite mortgage.  The Lender filed an action to correct several deficiencies with its mortgage: (1) signed by husband but not wife; (2) unidentified preparer; (3) no scrivener’s statement; (4)… Continue Reading

It’s Not Purdy, But It’s Not A Per Se Security Agreement

Posted in Article 9, Bankruptcy Trends, Collateral
In Sunshine Heifers, LLC v. Citizens First Bank (In re Purdy), 763 F.3d 513 (6th Cir. 2014), a divided Sixth Circuit reversed the bankruptcy court’s finding that cattle leases were disguised security interests. Over the course of three years, Debtor Lee Purdy entered into several leases with Sunshine Heifers for a total of 435 dairy… Continue Reading

Protecting the Lender: Strategies for Extending Credit to Health Care Providers

Posted in Accounts Receivable, Collateral, Healthcare, Uncategorized, Workouts
Contrary to popular belief, lending to a doctor is risky business. The business of a health care provider is specialized and, therefore requires specialized lending. Lenders cannot simply repackage loan documents used for other industries, and having a lien on receivables may not alleviate the risk. Lenders must accurately value the collateral and to do… Continue Reading

Top 5: Exotic Collateral

Posted in Collateral, Top 5
I don’t know if it is coincidence, but since moving to Kentucky in 2007, I have worked on cases involving much more interesting collateral than earlier in my career.  In fact, I’m only one collateral-category away from hitting the Kentucky Trifecta of Equine/Coal/Bourbon workouts (sadly, I’m missing the most important one).… Continue Reading

Collateral Damage: More on Healthcare Receivables Under the ACA

Posted in Accounts Receivable, Affordable Care Act, Collateral, Healthcare
In a previous post, I wrote about potential looming trouble for lenders that have healthcare receivables as collateral. @KHNews has a more in-depth article on the 30-90 day rule applied to insurers that provide ACA exchange plans. If an enrollee in an ACA plan fails to pay premiums, the insurer is required to reimburse the… Continue Reading

Healthcare Accounts Receivable and Possible Looming Troubles?

Posted in Accounts Receivable, Collateral, Healthcare
Accounts receivable are often the most significant asset of a healthcare provider. As this @MorningEdition interview points out (Doctors’ Offices Get Put on Hold Trying to Find Out Who’s Insured), there could be a slowdown in insurance reimbursements on those newly enrolled in an Obamacare (ACA) exchange insurance plan. Moreover, the insurance company could seek… Continue Reading

Welcome to the Neighborhood — Kentucky High Court to Determine Whether Lender is Obligated to Pay HOA Dues on Unimproved Property

Posted in Collateral, Kentucky Law, Owned Real Estate, Workouts
The Supreme Court of Kentucky has granted discretionary review of a court of appeals ruling that a bank taking 51 subdivision lots by deed in lieu of foreclosure was not entitled to the developer’s exemption for homeowners association (HOA) dues. In Woodlawn Springs Homeowners Assoc., Inc. v. Your Community Bank, Inc., the lower court had… Continue Reading