“Imagine a world where real estate transactions are closed without title insurance.” That’s the illuminating opening sentence of the article Getting Real about UCC Insurance for Real Estate by attorneys Ian T. Shane and Gary M. Markoff of the law firm Sherin and Lodgen. In fact, there is a world where real estate transactions are […]
Pledges of equity have been used for many years as the vehicle to allow mezzanine lenders to secure loans. Now, lenders use pledges of equity as an essential structuring tool to implement a logical exit strategy in case of a default. Although sometimes referred to as “accommodation” pledges, the pledges of equity taken in conjunction with a lender making and securing a mortgage loan are more accurately described as Equity Control Pledges.
Lenders have typically relied on heavily-qualified legal opinions of outside counsel regarding the attachment, perfection and priority of a security interest. A UCC insurance policy provides a significant advantage over a legal opinion, offering greater protection to the lender and limited liability to outside counsel.
Unlike real property, where both the buyer and the buyer’s title company rely on the protections of a particular state’s recordation act to locate and identify all transfers of ownership of real property, no similar statutes or protections exist with regard to a transfer of an ownership interest in a limited liability company (LLC), limited […]
A UCC insurance policy is issued for many types of loan transactions. It is especially valuable to any lender to whom a security interest is granted in collateral specifically described in Articles 8 and 9 of the Uniform Commercial Code.
If you are an attorney responsible for protecting an institution that provides financing for any type of energy-related project — such as solar farms or wind turbines — you should consider the benefits of a UCC insurance policy.
Mezzanine financing is used when additional monies (above the amount of financing available from the mortgage lender) are needed to acquire, construct or refinance a commercial piece of real property. Because of loan-to-value restrictions by mortgage lenders (currently, sixty to sixty-five percent loan to value is typical) the owner/developer needs to provide funds in the […]
Welcome visitors to our new blog, UCC Insurance Insights. We want the blog to be a clearinghouse for all things relating to commercial loan transactions involving a security interest being granted to the lender for any type of collateral under Article 9 (secured transactions) and Article 8 (securities) of the Uniform Commercial Code (UCC).
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