Problem Method
Poor loan documentation can cost your financial institution thousands of dollars each year. Unfortunately, the importance of effective loan documentation is most apparent when it is already too late. This workshop focuses on the major concepts, specific requirements and common problems in the specialized fields of commercial and agricultural loan documentation, with emphasis on avoiding loan losses because of faulty documentation. Our “hands‐on” approach allows you to return to work and apply what you have learned immediately.
Objectives
The program will illustrate how to:
- perfect security interests under Revised Article 9 of the UCC
- identify the borrower (including spouses and children involved in family farming operations) and document the authority to borrow
- understand contract basics: notes, security agreements, mortgages, pledges and other essential loan contracts
- use of commitment letters
- undertake essential pre‐loan due diligence
- understand the effect of non‐UCC crop and livestock lien status on the lender taking collateral under the UCC
- understand the implications of loan default(s)
- comply with notification requirements under the Federal Food Security Act
- protect against tax liens and other conflicting encumbrances
- understand bankruptcy implications
- recognize and prevent violations of ECOA (Reg‐B)
Essentials of Article 9 of the Uniform Commercial Code
Essentials of Article 9 of the Uniform Commercial Code includes coverage of the 2010 amendments that became effective in most states July 1, 2013. Among other changes, these amendments affect how individual debtors are to be identified on UCC financing statements. The revisions to Article 9 of the UCC brought major changes to the area of agricultural security interests. The program will examine the most common problems encountered with UCC Article 9 and provide practical guidance in critical areas, including the following.
- impact of 2010 amendments effective July 1, 2013
- identification of individual debtors on UCC financing statements
- agricultural security interests with an emphasis on perfecting security interests on both tangible and intangible
- agricultural collateral
- perfecting security interests in deposit accounts under revised Article 9
- cover, in detail, the “where to file” rules under revised Article 9
- interaction between Article 9 security interests and state agricultural liens under the expanded scope of Article 9
- different perfection methods under Revised Article 9 and when to use them
- lien priorities and lien searches
- enforcing unperfected security interests
- gaining priority through purchase money transactions
Real Estate Mortgages/Deeds of Trust
Participants will learn the basic requirements of securing loans with real estate examining such problems as perfection, future advance clauses and loan renewals. Participants will be exposed to proper “due diligence” procedure when a loan is secured by real estate including the use of title insurance, surveys and environmental audits.
About the Instructor
Terri D. Thomas, JD, is the executive vice president and chief operating officer of the Kansas Bankers Association and director of its subsidiary, Kansas Bankers Consulting Services LLC. In these roles, she provides legal and compliance services to Kansas banks. Thompson has more than 40 years of banking experience working in various aspects of the banking industry.
For More Information
Contact the MBA Education Department at 573-636-8151 or email.