Drafting and Negotiating a Real Estate Workout Agreement
What You Will Learn
"The default rate on commercial mortgages held by U.S. banks more than doubled in the second quarter from a year earlier amid falling rents and occupancies for malls, office buildings, and warehouses." ---Bloomberg News
To prepare for the expected demand for loan modifications resulting from the recent swift decline in the commercial real estate market, you must be able to draft and negotiate workout agreements for your clients. This timely webcast provides you with the practical drafting tools you will need to prepare or negotiate, on behalf of a lender or borrower, an effective reinstatement and modification agreement for an impaired secured commercial real estate loan as an alternative to foreclosure or bankruptcy. Forbearance agreements also will be considered. Taught by a national expert on contract drafting and commercial real estate defaults, this program features an in-depth analysis of the structure and language of a workout agreement and is a must for practitioners who want to gain the skills needed to draft and negotiate these often complex agreements. Topics covered in the webcast and/or study materials include:
Pre-Drafting Considerations: Forbearance and modification agreements compared, benefits and occasions for use of each from the point of view of borrowers and lenders;
Modification of Business Terms of the Loan: Adjustments in principal, interest rate, maturity date, payments of interest and principal, tax, insurance, other escrows, carve outs, and liability limitations;
Default Related Issues: Debt and default acknowledgements, reinstatement of loan, treatment of arrearages, accrued late charges, dealing with prior accelerations, disposition and replenishment of tax, insurance, and other escrows, accumulated unpaid default rate interest, reinstatement fees, escrowed deeds in lieu, absolute assihnment or vesting of rents;
New Value and Additional Collateral from Debtor: Source, amount and use of new value to be advanced by borrower or affiliated parties, loan pay down, new collateral, assignment of equity interests;
Guarantees: Dealing with existing guarantors, carve out revisions, additional workout guarantors, letters of credit (existing or new);
Property Income and Management: Collection of rents, lockbox arrangements, lease terminations and modifications, management arrangements;
Lender Protective Provisions: Non-waiver provisions, release of lender, debtor acknowledgements;
Protecting Collateral and Debt Lien Priority: Title issues, physical condition of the real estate, unpaid trade creditors, post loan closing liens,and future liens;
Documentation: Representations and warranties, ancillary workout documents
Related Legal Issues
And much, much more!
Who Should Attend
Practitioners who want to become proficient in drafting workout agreements for commercial real estate loans should attend this webcast.
Planning Chair
Marvin Garfinkel, Of Counsel to Drinker Biddle's Philadelphia office, is an experienced transactional lawyer, who has lectured and chaired courses for ALI-ABA and numerous other organizations. His areas of expertise include real estate law, including financing, defaults and workouts, common interest properties (condominiums, home owner associations, etc.), shopping center and other commercial development and commercial leasing, and business transactions. His intellectual property subspecialties include distribution and licensing relationships and trademarks.
Mr. Garfinkel's extensive writings have been published in legal journals and trade publications. He has advised and served on the editorial boards of a number of legal publications, statutory drafting commissions, and projects, as well as on several Uniform Law drafting and study committees, including those involved in drafting various articles of the UCC. He was an Adviser on several American Law Institute Property Law Restatements. Mr. Garfinkel is the author of the recently published book, Real World Document Drafting: A Dispute-Avoidance Approach (ALI-ABA 2008). For more information about Mr. Garfinkel, visit his website at www.realworlddocs.com.
Total 60-minute hours of instruction: 2.0; total 50-minute hours: 2.4.
Times
Eastern 1:00 pm – 3:00 pm
Central 12:00 noon – 2:00 pm
Mountain 11:00 am – 1:00 pm
Pacific 10:00 am – 12:00 noon
Alaska 9:00 am - 11:00 am
Hawaii 7:00 am – 9:00 am
