Pledges of equity have been used for many years as the vehicle to allow mezzanine lenders to secure mezzanine loans. Now, lenders use pledges of equity as an essential structuring tool to implement a logical exit strategy in case of a default. The pledges of equity taken in conjunction with a lender making and securing […]
In this article written for LexisNexis by Gary Zimmerman of UCCPlus, read about the role of the UCC in commercial real estate transactions, with a particular focus on those involving pledges of equity. Get an overview of the UCC and pledges of equity in the real estate mezzanine loan context. Also, learn about the two […]
Guest author Darrell W. Pierce of the law firm Dykema Gossett explains why lenders providing financing for power production facilities need to examine the unique characteristics of these properties to avoid substantial gaps in title insurance coverage.
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.
For working capital or term loan transactions, an insured lender is making a loan to a business looking to expand or enhance its operation. These loans are typically secured by all assets of the business, but usually focus on accounts, inventory, equipment and the general intangibles of the company.
On an episode of their podcast The Deal Junkies, attorneys Rusty Fleming and Beau Baker interviewed Gary Zimmerman of UCCPlus about the increased use of UCC insurance policies in commercial transactions.
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).
You must be logged in to post a comment.