The webinar will begin with a review of the basics of how a commercial loan request “should be” processed to avoid a problem loan. This will include a brief review of “correct” business structure, the six elements of proper loan structure, and the four aspects of adequate loan support.
The webinar will then focus on what happens when a “good” loan turns into a “bad” loan, i.e. the market has now turned down, tenants have left, and the payments are severely delinquent. At this point in time, what should the institution do and not do? This section will address the “legal rights” of the institution and the “practical steps” that the institution should take to protect itself.
The practical steps will include the collection process, restructuring the loan, and/or proceeding against the borrower through repossession, foreclosure, filing a lawsuit to obtain a judgment, forcing the borrower into bankruptcy, or simply “walking away.” This section will also include the “outside” influence from the regulators.
The webinar concepts will be summarized through a series of mini-case studies.
What You’ll Learn
- Review the management of problem loans
- Process a commercial loan “correctly” including business structure, loan structure, and loan support
- Face the reality that some loans go bad!
- Determine the institution’s strategy in protecting itself: collections, restructuring the loan, repossession, foreclosure, filing a lawsuit to obtain a judgment, forcing the borrower into
- bankruptcy, or walking away
- Assess “outside” influence by the regulators
- Apply the concepts through case studies
Who Should Attend
This session is ideal for commercial lenders, credit analysts, loan documentation specialists, branch managers, assistant branch managers, private bankers, and business development officers.