Sample Cases

Bank and attorney responsibilities

The issue in this case was whether or not the attorneys representing the bank had properly performed their duties in researching and perfecting the lender’s security interest in collateral that supported sizable loans to a borrower.

Commercial bank loan structure

The issue in this case was whether or not intercompany loans contained preferential terms that would have been available from a disinterested third-party commercial lender or investment banker.

Lead bank responsibilities in a syndicated credit

The issue in this case was whether or not the lead bank properly performed its fiduciary responsibilities by 1) acting prudently in disclosing information to one or more participating banks, and 2) allocating the borrower’s loan payments to lenders in a proper manner.

Bank handling of Non-negotiable collateral

The issue in this case was whether or not the bank, in accepting certain non-negotiable collateral, utilized proper practices to safeguard the collateral while in its possession before returning it to the borrower.

Application of residential mortgage payments

The issue in this case was whether or not the mortgage servicer acted properly and consistently in its 1) default notification, 2) decisioning on accepting/rejecting payments after default, and 3) application of payment proceeds on the borrowers’ obligation to the lender.

Loan terms on credit extended by a non-traditional lender

The issue in this case was whether or not underwriting standards were appropriate when credit was not available from traditional banks due to difficulty in determining underlying collateral value and uncertainty in projecting cash flow within a reasonable time period.

Overdraft charges
 
The issue in this case was whether or not the sequence of posting debit and credit transactions by the bank had a deleterious effect on overdraft fees charged to the account holder and was permissible under governing agreements and disclosures.

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