Webinar: Effective Loan Documentation for Lenders: How to Deter and Prevent Litigation through Proven Loan Documentation Safeguards

Schnader attorneys Melissa S. Blanton, vice chair of the firm’s Corporate and Finance Practice Group, and Stephen J. Shapiro, co-chair of the firm’s Financial Services Litigation Practice Group, will be presenting a financial services webinar on November 19 at Noon EST titled “Effective Loan Documentation for Lenders: How to Deter and Prevent Litigation through Proven Loan Documentation Safeguards.”

The webinar derives from a recent decision by the United States Court of Appeals for the Third Circuit, which suggested steps that lenders who accept the assets of a borrower’s wholly-owned subsidiary as collateral should consider taking to reduce the likelihood of litigation in the event the lender must pursue the collateral. In Wachovia Bank National Association v. WL Homes LLC (In re: WL Homes), borrower WL Homes pledged the bank account of JLH, its wholly-owned subsidiary, to Wachovia as collateral on a loan. When WL Homes later filed a bankruptcy petition, Wachovia brought an action in the bankruptcy court for a declaration that its security interest in JLH’s bank account was enforceable. The bankruptcy court ruled in Wachovia’s favor because it concluded that JLH had consented to WL Homes’ pledge of its bank account, and both the district court and the Court of Appeals affirmed that holding.

This engaging webcast will highlight documentation strategies that lenders should consider to potentially dissuade opponents from litigating the enforceability of security interests and others aspects of loan agreements.

Comments are closed.

%d bloggers like this: