Home » Tag Archives: Molly Jeffcoat Moody

Tag Archives: Molly Jeffcoat Moody

COMMERCIAL FINANCE 701 — Real estate loans – HVCRE revisited

In the midst of all the recent investigations, pardons, Supreme Court rulings, and incessant breaking news, you might have missed a favorable change in federal banking law.  On May 22, Congress amended the Dodd–Frank Wall Street Reform and Consumer Protection Act (enacted in 2010), which revisions included significant tweaks to the High Volatility Commercial Real Estate (HVCRE) regulations governing commercial ...

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COMMERCIAL FINANCE 701 — The new federal banking sheriffs

On May 24, 2018, 489 days after his inauguration, President Donald Trump finally succeeded in placing appointees at the helms of the four major federal banking regulators.  The prospective immediate and longer term changes to be brought about by these new federal banking sheriffs bode well for banks, commercial lenders, and developers. BACK DROP: Barack, Elizabeth & Donald During the ...

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COMMERCIAL FINANCE 701 — A LIBOR Update: Here comes SOFR!

  Following the sounding of LIBOR’s death knell last summer, a flurry of governmental and industry activity culminated in the selection of SOFR as a replacement index rate for commercial loans.  Accordingly, a sequel of our August 2017 column “The Passing of LIBOR” is in order. London Interbank Offered Rate (LIBOR) Recall on July 27, 2017, the Brits prospectively announced ...

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COMMERCIAL FINANCE 701: The Passing of LIBOR

The death knell for LIBOR officially sounded on July 27, 2017, when the UK’s Financial Conduct Authority broadcast it would cease maintenance of the internationally-used interest rate benchmark beyond December 31, 2021.  The surprise announcement was surprising only as to the timing of the press release and the sunset date.  The Wall Street Journal dissed the rate back in 2008 ...

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COMMERCIAL FINANCE 701 — The powerless power of attorney

The long-awaited closing date on the $21.5million commercial construction loan is finally here.  Construction projects involve numerous moving parts. By the time a loan closing occurs, the out-of-pocket developer on the project awaits a hefty advance. The borrower, a Mississippi limited liability company, has two members – one of whom serves as the managing member.  The managing member is present ...

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COMMERCIAL FINANCE 701 — The outlook in Mississippi for 2017

Michael Lewis’ new book – The Undoing Project – should be the starting point for any projections about commercial finance in Mississippi during 2017.  The book underscores our defective reasoning process that routinely (1) underestimates uncertainty, (2) places too much weight on limited observations, and (3) ignores biases.  With those caveats in mind, we guesstimate the outlook for commercial finance ...

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COMMERCIAL FINANCE 701: Zoning – trust, but verify, authenticate & insure

Zoning plays a critical role throughout the life of a commercial development.  In terms of reviewing zoning status, the Reagan-adopted “trust, but verify” adage should come to mind.  Zoning, however, can be quite complex and the more appropriate proverb might be “trust, but verify, authenticate and insure.” As the term is generally used, “zoning” refers to the approved usage of ...

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COMMERCIAL FINANCE 701: Payment and performance bonds in construction projects

Construction lenders on large commercial construction loans customarily require payment and performance bonds.  At the loan commitment letter stage, this condition rarely concerns a borrower.  Later, however, when the requirement materializes into a line item in the contractor’s budget, the borrower might have second thoughts.  We attempt to define and appraise the payment and performance bond (P&P Bond). Let’s assume ...

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COMMERCIAL FINANCE 701: Practical issues with multi-tiered entity structures

It is quite common – even vogue nowadays – for the ownership structure of a commercial project to include a chain of entities.  Even in a relatively straightforward commercial project, the resulting organizational chart can be convoluted.   (See Chart 1). The older ones among us grew up with corporations as the standard fare, which invariably included shareholders, a board ...

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COMMERCIAL FINANCE 701: The UCC, secured transactions & personal property liens

The Uniform Commercial Code (UCC) has swayed many a law student to question a future career in business law.  A semester of UCC law, using a small font, 3-inch thick textbook chock-full of tedious definitions and mind-numbing concepts, bores even an otherwise indefatigable accounting grad.  Our topic is limited to secured transactions. BACKGROUND.  A smidgen of background information on the ...

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