The Paley Rothman Blog
Paley Rothman shares this library of resources with clients and friends of the firm to help them stay ahead of legal and business developments and trends. Here, you will find helpful tips and tools written by our attorneys.
Data privacy used to be back burner due diligence. That has changed. The Snowden leak made personal privacy Topic One for months. Since then, the OPM hack, the iCloud hack, and other well publicized data breaches have raised data privacy awareness both in M&A and investor due diligence.
Following 9/11, many lenders required property developers and owners to carry terrorism coverage. To facilitate that coverage the Terrorism Risk Insurance Act (TRIA) was established in 2002 as federal protection for insurers if an act of terrorism were to result in losses above $100 million. It had been reauthorized twice, and the House voted to extend TRIA, but Congress, due to lack of agreement in the Senate, was unable to agree on terms to extend the act beyond 2014.
Commercial mortgage-backed securities (CMBS) or Conduit loan borrowers would likely be startled to learn that their so-called “non-recourse loans” may not be non-recourse after all when there is a payment default. Contrary to what Conduit borrowers would reasonably believe they had bargained for, a simple payment default (not caused by any fraud, misapplication of funds or other “bad boy” acts) could result in full borrower responsibility for repayment of any deficiency.
The bottom line on title insurance is: “Get it or else.” Whether you are buying a house or commercial property in Maryland, the District of Columbia or Virginia, you will be asked to buy title insurance. If you are taking a loan to buy the property, the lender will require that you purchase title insurance, not to protect you, but to protect the lender. For an additional premium, you can also get your own policy from the same title insurer. If you currently own your own house or commercial property, you most likely already have title insurance, but will need to renew it if and when you refinance the property.
Every commercial loan made by a bank or other financial institution includes a promissory note which is the borrower’s “promise” to pay back the loan. The note contains all of the important terms of the transaction, including the interest rate, the amount of the monthly payment and the date the loan matures. If the borrower makes all of his payments on time and pays off the note at the maturity date, all is well. What happens when the borrower falls behind and cannot make the required payments?