The United States Court of Appeals for the Second Circuit issued a decision today in the case of OneWest Bank, N.A. v. Robert W. Melina, No. 15-3063 (2d Cir. June 29, 2016) holding that a national bank is a citizen only of the state in which its main office is located, as stated in the bank’s articles of association.

Continue Reading U. S. Court of Appeals 2nd Circuit Decision: National Bank is a Citizen Only of the State in Which its Main Office is Located

Formerly known as a bankers blanket bond, and sometimes referred to as a fidelity bond, the financial institution bond as it is commonly known, is simply an insurance policy.  Though the term “insurance policy” does not typically appear in its title, financial institutions should view a financial institution bond as just that.   When faced with certain types of loss, financial institutions should be reviewing their financial institution bonds carefully to determine if coverage exists.

Continue Reading It’s Insurance: The Financial Institution Bond

Effective October 1, 2016 Connecticut will have finally updated its 1965 law governing Powers of Attorney (POA’s). The new law, called the Connecticut Uniform Power of Attorney Act, or “CT UPOAA”, makes many changes that estate and elder law attorneys think are long overdue, and useful, and it imposes new obligations on banks to whom POA’s are presented. (The changes are found in CGS Chapter 15, Sections 1-350 to 1-35, as amended by Public Act 16-40 this year.)

Continue Reading Connecticut’s New Power of Attorney Law

The Connecticut Appellate Court has weighed in on the topic of whether or not a lender foreclosing a mortgage in Connecticut must comply with the statutory process to make the administrator of the decedent a party to the action to ensure a proper judgment of foreclosure enter…sort of.

Continue Reading Death of Defendant During Pendency of a Foreclosure Action – Connecticut Appellate Case Update

Imagine this scenario:  A Bank issues a loan to two co-borrowers.  One co-borrower relocates to Massachusetts.  There is a default on the loan and the Bank commences suit.  During litigation, the Bank determines it needs to take the deposition of the Massachusetts co-borrower.  It may be possible to take the Massachusetts co-borrower’s deposition in Connecticut if you can successfully serve him or her while they are located in Connecticut.  It is also possible to notice the deposition in Massachusetts, but without a subpoena the borrower may choose not to appear at the deposition.  So, what can the Bank do when the out-of-state borrower fails or refuses to appear?

Continue Reading Moved to Massachusetts! Deposing a Relocated Borrower

If you think getting a judgment is difficult, try collecting one….  There is definitely an “art” in collecting money.  Especially in Connecticut where there are specific procedures that a judgment creditor will have to take in order to enforce a money judgment against a debtor.  Following the steps will help, but being diligent, patient and creative also play a large part in securing monies owed.

Continue Reading The Art of Post-Judgment Collection in Connecticut

Imagine that you are an unsecured lender who has learned that a borrower has filed for bankruptcy and has little to no assets available to pay creditors.  Is there any way to prevent your debt from being extinguished?  This is a common question and often the answer unfortunately is no; however, if the debtor is an individual and the debt meets certain requirements established by the Bankruptcy Code, the court may declare the debt nondischargeable (in other words, the debt will remain with the debtor after the bankruptcy case is closed).

Continue Reading Objecting to the Dischargeability of Debt: How a Creditor May Protect its Debt in Bankruptcy

When Borrowers and their lenders think about environmental due diligence, they immediately focus on Phase I/Phase II/ Environmental Site Assessments. That’s a good thing, and is an essential requirement when acquiring real estate. However, when the deal involves an on-going business operation, another type of evaluation – a compliance audit – is needed.

Continue Reading Compliance Audits as part of Environmental Due Diligence- It’s more than just a Phase

Imagine applying for a mortgage or commercial loan on Amazon or shopping for a checking account via an App on your Iphone. As many in the financial services industry may already know, there are a new brand of startups known as “Fintech” companies who are rapidly becoming viable alternatives to traditional wealth management. “Fintech,” which is abbreviated from financial technology, are various startup companies who are utilizing technology to make traditional financial services more efficient – for example, mobile payments, money transfers, loans, fundraising and asset management. Fintech companies can provide users with a variety of financial services that were once exclusively within the purview of a traditional bank (from facilitating investments, financial planning to underwriting). Fintech startups are geared towards giving the consumer a more personalized and efficient product than currently exists. If the trends continue, Fintech companies will cause the technological areas of consumer banking to undergo significant changes.

Continue Reading Swimming with the “Fintechs”– an insight into the future of Financial Technology Companies

On May 18, 2016, President Obama and Labor Secretary Perez announced the publication of the final rule updating the overtime pay protections. The Department says that the new rule “will automatically extend overtime pay protections to over 4 million workers within the first year of implementation.” The new threshold is $47,476. The rule is effective on December 1, 2016.

Continue Reading New Wage & Hour Salary Threshold for Exempt Positions ANNOUNCED