NP&W News
November 19, 2014

Credit Union Business Loan Workout and Collection

Douglas L. Burgess and Stuart Greenberg presented a seminar at the Maryland District of Columbia Credit Union Association (MDDCCUA) focused on loan administration of the business loan after it has been booked.  The agenda was as follows:

Schedule:     9 am.   Notice Letters to Borrowers and Guarantors; Workout Agreements, Forbearance, Short Sale Agreements; Deeds in Lieu of Foreclosure

                 10 am.   Confessed Judgment Suits, Foreclosures, Bankruptcies, Lift Stays

              11 am   Sample MBL Loan Post Closing Scenarios discussed by Panel and Audience from the perspective of the Lender, Borrower, Guarantor and the Lender’s Counsel and Accountant.

Each participant left with a handout of materials and an exhaustive appendix of forms and checklists.

A detailed list of the topics included in the handout and appendix:


Loan Administration
Loan in Default – Initial Steps / Checklist
  Reservation of Rights Letter 
  Workout / Forbearance Agreements
 Uncured Default and Non Responsive Borrower Guarantor / To Do   Checklist
 Demand Letter  //  Acceleration Letter
 Foreclosures – Time Line and Checklists
 Lawsuits – Types and Purposes and Collection of Money Judgments
 Guarantor Issues
 Bankruptcy of the Debtor or Guarantor // including Lift Stay and    Objections to Debtor Plans
 Note Sales
 Participation Agreements– Purpose, role of lead/correspondent, compliance with loan policy and NCUA regulations, sale and wind down
 Knowledge and Continuing Education – credit schools, training, etc.
 Lender Liability-What it is and how to deal with it- Purpose and Pitfalls
 Fraud – Borrower and Guarantor Loan Fraud
 Hypothetical and Panel Discussion

Office Location

502 Washington Ave.
Nottingham Centre, Ste 700
Towson, Maryland 21204