Are you ready to jump on the tax-exempt bond bandwagon? Over the last eight years, the landscape of tax-exempt bond financing has changed and more and more bonds are being sold directly to banks across the nation.

Do you have customers or potential customers that are: hospitals, health centers, visiting nurses associations, nursing homes, assisted living facilities, continuing care retirement communities, child care organizations, colleges, universities, private independent schools, museums, theaters, zoos, adult day care facilities, boys & girls clubs, community action agencies, and social service agencies?

Continue Reading The Bond Bandwagon

Massachusetts is notorious for having hyper-technical rules about notarization.  The trouble started in 2009 with the bankruptcy case of Matthew H. Giroux.  Mr. Giroux signed a mortgage in front of a notary public.  He acknowledged to the notary public that he signed the mortgage voluntarily for its stated purpose.  The notary public signed where he was supposed to, affixed his notarial seal, and inserted the expiration of his commission.  The mortgage was then recorded in the appropriate registry of deeds.  The notary public, however, forgot to insert Mr. Giroux’s name in the certificate of acknowledgement (the notary block on the mortgage); so it said: “[B]efore me personally appeared _____________ to me known to be the person (or persons) described in and who executed the foregoing instrument . . . .”  The bankruptcy court didn’t like that and invalidated the mortgage.

Ok, lesson learned.  Notaries—don’t forget to fill in the name of the person who signed the mortgage.

Continue Reading New Forms May Alleviate Some Concerns About Massachusetts Notarizations

As I type this blog post, I am sitting at my desk with a four-inch-thick binder filled with title insurance forms—form policies, form endorsements, premium rate tables, survey requirements, etc.—and it occurs to me that many people who deal with real estate loans and title insurance on a daily basis may have never read a title insurance policy.

It’s probably not necessary for a loan officer involved in a real estate transaction to read the whole title insurance policy, but it may be helpful to have a basic understanding of the benefits and limitations of a lender’s title policy as well as some of the optional endorsements.  To provide a basic understanding of title insurance, this post is the first in what will be a series of articles on title insurance from a lender’s perspective.

Continue Reading Title Insurance: What is its Value?

As most people (at least in the banking world) know, a security interest is the granting of an interest in property to secure obligations, usually loan debt.  If the borrower defaults under its obligations, the bank can foreclose and take the collateral.

Continue Reading Collateral 101: Perfecting Security Interests in Common and Uncommon Collateral

Bankers and other professionals who have worked on construction loans in states other than Connecticut will know how much of a pain it can be to make construction loan advances. You usually need to perform a title update and obtain lien waivers and various indemnifications from contractors and borrowers. This is because many states give priority to liens for construction services and materials (i.e. mechanic’s liens) over subsequent construction loan advances.

This is not true in Connecticut.

Continue Reading Construction Financing and Mechanics’ Liens in Connecticut

You just got your committee approvals for a new relation.  It is a borrower you have been after for some time.  Approvals are fairly standard and call for a secured credit facility with a priority all business asset lien.

The borrower is moving nearly all of its accounts to your bank for cash management too.  But the borrower claims he needs to keep one account at a mutual since he is holding his breath that there will be demutualization and he will hit it big with stock redemption.  You do not have the heart to crush his retirement dreams so you let him keep that other account.

How can you comply with your approvals and get a perfected security interest on that deposit account?

Continue Reading Deposit Account Control Agreements. Who Needs Em?

On February 23, 2016, in the case of MERSCORP Holdings, Inc. et al. v. Dannel P. Malloy et al., the Connecticut Supreme Court upheld the constitutionality of certain state statutes which impose higher fees for mortgage nominees, such as MERSCORP Holdings, Inc. and Mortgage Electronic Registration Systems, Inc. (“MERS”), for recording documents in the public land records.

A brief history shows that back in 2013, the Connecticut legislature created a two-tiered system by which town clerks collect recording fees with the effect that mortgage nominees were obligated to pay up to three times more for recording documents than other filers.

In response, MERS commenced an action against state officials.

Continue Reading State Statutes Requiring MERS To Pay Higher Recording Fees Declared Constitutional