Real-Estate Doom Loop Threatens America’s Banks

Real-Estate Doom Loop Threatens America’s Banks Regional banks’ exposure to commercial real estate is more substantial than it appears Bank OZK had two branches in rural Arkansas when chief executive officer George Gleason bought it in 1979. The Little Rock lender today has billions of dollars in commercial real-estate loans, including for properties in Miami and Manhattan, where it is helping fund the construction of a 1,000-foot-tall office and luxury residential tower on Fifth Avenue. Regional banks across the country followed a similar playbook, gorging on commercial real-estate loans and related investments in big [...]

2023-09-29T11:30:38-07:00News|

A Look at the Friendly Foreclosure Option

When a debtor defaults on a loan, a secured lender has several options for repayment. One option is a foreclosure sale under Article 9 of the Uniform Commercial Code ("UCC").1 An Article 9 sale can maximize the secured lender's recovery without the cost and delay of a judicial foreclosure sale or a sale under Section 363 of the Bankruptcy Code and without certain hurdles presented by a direct sale between the debtor and a buyer. If a buyer or the secured lender determines the Article 9 sale is the preferred route, there are procedures to consider. This article discusses the procedures of an Article 9 sale as well as the advantages and pitfalls involved. Section I explains the sale remedy, section II describes the mechanics of the sale process, section III discusses the advantages, and section IV points out potential pitfalls.

2022-02-07T16:31:35-08:00News|

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