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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Tuesday, December 10, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will guide counsel for lenders and loan servicers on seeking or opposing the appointment of a receiver for distressed commercial real estate. The panel will also explain how lenders, servicers, and prospective buyers can navigate the receivership process.

Faculty

Mark Silverman
Miscellaneous
Richard P. Ormond
Shareholder; Co-Chair Fiduciaries, Receivers & Trustees Group
Buchalter

Mr. Ormond has over 23 years of experience that includes finance, special servicing, loan syndication and participation, real estate, lending and banking, receivership, cannabis regulations, commercial litigation, and restructuring. He has tried numerous cases in state court, federal court and bankruptcy court and has arbitrated dozens of matters. Mr. Ormond is one of the nation’s leading experts concerning banking and finance; loan servicing; receivership law; and cannabis regulations. He is the former President of the California Receivers Forum, and he is the former Chair of the Remedies Division of the Los Angeles County Bar Association. Mr. Ormond also teaches Cannabis Business and Finance Law at Loyola Law School and Continuing Legal Education courses on dispute resolution, debt enforcement, secured transactions, cannabis law and receiverships.

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Matthew S. Tarshis
Principal
Frontline Real Estate Partners, LLC

Mr. Tarshis is responsible for leasing the company’s owned portfolio consisting of retail properties. In addition to supporting the Frontline team with acquisitions and dispositions, he also represents both landlords and tenants and is involved with lease negotiations, sales, purchasing, market research, and site selection. Prior to joining Frontline, Mr. Tarshis was a member of RKF where he supported the firm’s Chicago brokerage team on both landlord and tenant representation activities. He also was responsible for updating RKF’s listings database and searched and explored for new retail opportunities.

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Description

The current commercial real estate market conditions have resulted or likely will result in defaulted loans and distressed real estate and the need for court-appointed receiverships. Lenders and servicers appoint receivers to manage, market, and sell distressed assets during or instead of foreclosure. Receiverships offer several benefits to lenders and servicers, primarily by providing an opportunity to stabilize and maximize the value of the subject property in a relatively quick and cost-effective manner. But, there are several factors to consider.

The lender must be familiar with the process for appointing the receiver, determine who the receiver will be, and demonstrate to the court that the appointment of a receiver will benefit the management of the property and preserve value.

Many states do not have statutes that define what powers a court-appointed receiver may have, so the order should contain all the powers and responsibilities of the receiver. Key provisions include the ability to manage and control property, collect rents, and pay all expenses incurred with managing the property, as well as the power to hire the management company and the leasing agent. The receiver should also be indemnified for any actions taken in compliance with the order.

Listen as our authoritative panel explains the factors that counsel for lenders and servicers should consider when evaluating whether to seek or oppose a receivership for distressed commercial real estate. The panel will also explain strategies for navigating the receivership process.

Outline

  1. Receivership overview
    • Receivership defined
    • Types of receiverships
    • Appointment of the receiver and the receivership order
    • The receivership process and reporting requirements
    • Factors to consider when evaluating whether to seek or oppose a receivership
  2. Common legal and business considerations with receiverships
    • Receivership fiduciary obligations and liabilities
    • Shelter from lender liability
    • Borrower bankruptcy issues
    • Risks to the prospective buyer: no representations or warranties on the property, dealing with a defaulting borrower, title issues, etc.
    • State court versus federal court: pros and cons
    • Managing costs of receiverships

Benefits

The panel will review these and other notable questions:

  • What factors must be considered by lenders and servicers when evaluating whether to seek or oppose a receivership?
  • What are the critical provisions for any receivership order?
  • What are the benefits and risks to prospective buyers in purchasing a property through a receivership?