PEDA - Pennsylvania Economic Development Association

Preconference Session: The Life of a Loan A to Z

  • 04/20/2015
  • 2:00 PM - 5:30 PM
  • Harrisburg Hilton, 1 N 2nd St, Harrisburg, PA 17101
  • 2

Registration

The Life of a Loan A to Z

This session is recognized by PEDA and by the Pennsylvania Economic Development Institute.

Click here to download brochure

Register by Thursday, April 9th, to be included on the attendee list.

This session will look at the chronological “life of a loan” from a legal standpoint.  The following issues are among those to be addressed during the session, which will also recognize and address the differences between non-profits, which must engage legal counsel, and governmental or quasi-governmental entities who would engage their solicitor.   

  • Underwriting – This section will focus on how to prevent bad loans, stressing that cash flow – not collateral – repays loans.  One must understand the flow of cash between owners and related entities as well and how to include this in the underwriting process so that a legal claim can be made to the cash flow.  What terms and conditions can you set and what is the real value of them to you in terms of likelihood of yielding anything if a deal goes bad?  This section will end with a discussion of the realities of collecting on collateral (e.g., laws, pitfalls, etc.).
  • Closing – Learn how to ensure the loan documents you’re executing actually include all the terms and conditions you demand for the loan.  Learn how to perfect liens and how to determine what rights the borrower should give and receive, etc.
  • Managing the portfolio – This section will delve into the maintenance of collateral interests, the importance of monitoring insurance, and the identification of red flags at annual review time (and the rights the loan documents give you if red flags are discovered).  Also discussed will be a case study in which the discovery of red flags and the subsequent intervention helped put a client’s business back on track.  Finally, resources will be identified that can help when issues arise.
  • Addressing Default – What constitutes a default?  What types of default are there?  What rights do the loan documents afford you and the borrower in this scenario?  What does filing judgment really get you?  What can you do without legal counsel (i.e., how do you save money during this process?)?  How do you capture personal assets not directly pledged as collateral?  How are your hands tied with bankruptcy filings (and what can you do even when this filing has taken place?)?  This section will address these and other issues including notices, forbearance, negotiations, etc.
  • Collections – This section will focus on final collection up to bankruptcy discharge, executing on repossession of collateral, auction sales, bankruptcy responses by creditors, types of creditors, who gets preference and who doesn’t, and other tricks successful lenders should have up their sleeves.

Presenters:

  • Anthony J. Foschi, Attorney, Tucker Arensberg, P.C. – Tony has worked with the Capital Region Economic Development Corporation (CREDC), Linda Goldstein’s organization, for several years on issues ranging from commercial contracts to real estate acquisition to development to loan workout legalities.
  • George A. Michak, Attorney, Tucker Arensberg, P.C. – An associate of Tony Foschi’s, George previously served as Chief Counsel with DCED.  In that role, George also represented PIDA, PEDFA, PMBDA, and the Governor’s Center for Local Government Services.
  • Patricia Brennen, Loan Program Director, North Central PA Regional Planning and Development Commission – Pat administers  the Pennsylvania Small Business First Fund and manages the ARC and EDA Revolving Loan Fund Programs, the Intermediary Relending Programs, the Micro Enterprise Loan Fund and the SBA Micro Loan Program. Her organization presently maintains an active portfolio of over $30,000,000 with 300 active loans.  She has served in various capacities on various taskforces and boards and was named the 2001 Pennsylvania Financial Services Advocate by the US Small Business Administration.

Attention Certified Providers: This course is approved to provide 3.00 organizational PDUs (Finance) as explained in the Guidelines for Certification of Economic Development Organizations issued by the Pennsylvania Department of Community and Economic Development and in the Institute’s Policies and Procedures.

*Note: We reserve the right to reschedule or cancel this offering.  In the event of a cancellation, a refund will be provided to registrants.

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