Understand the proper role of the legal opinion and develop techniques to minimize or eliminate unnecessary and wasteful contention.
Commercial lenders routinely require a borrower’s lawyer to deliver a legal opinion at the closing of the loan transaction. The borrower has to pay for this but rarely believes that the exercise provides any benefit to the borrower.
If the legal opinion is not negotiated until the end of the transaction, or if the borrower’s lawyer and the lender’s lawyer cannot agree on some element of the opinion, it often becomes a sticking point at the last minute, exacerbating the borrower’s frustration. How should a borrower’s lawyer deal with the opinion requirement to ensure that the process is handled efficiently and (relatively) inexpensively?
This topic will help lawyers who engage in financing transactions – both on the lenders’ and borrowers’ side – understand the proper role of the legal opinion and develop techniques to minimize or, hopefully, eliminate unnecessary and wasteful contention over the issues that can arise if the process is not handled intelligently.
Learning Objectives:
- You will be able to identify issues covered by most closing opinions.
- You will be able to describe entity issues.
- You will be able to explain specific issues covered by some closing opinions.
- You will be able to recognize the Investment Company Act..
This Live Webinar Covers These Hot Issues:
Overview
• Why Are Closing Opinions Requested?
• What Issues Should Closing Opinions Address?
• What Does the Lender Really Need?
• What Can the Borrower's Lawyer Really Provide?
Issues Covered by Most Closing Opinions
• Entity Issues
◦ Formation, Legal Existence and Good Standing
◦ Power of Entity to Engage in Transaction
◦ Absence of Conflict With Organic Documents
◦ Due Authorization, Execution and Deliver
◦ Government Approvals Required by Borrower
◦ Violations of Applicable Law Resulting From Financing Transaction
• Validity, Binding Effect and Enforceability of Financing Documents
◦ Standard CarveOuts for Bankruptcy and Other Creditors' Rights and Equitable Principles
◦ Laundry Lists of Other CarveOuts
◦ "Practical Realization" Opinions
• Factual Opinions
◦ Conflicts With Borrower's Other Legal Obligations
◦ Violations of Court Decrees or Orders Binding on Borrower
◦ Pending Proceedings Against Borrower
◦ Threats of Legal Proceedings Against Borrower
Specific Issues Covered by Some Closing Opinions
• Usury
• Perfection of Uniform Commercial Code Security Interests
• Effect of Real Estate Mortgages/Deeds of Trust and Assignment of Leases
• Substantive Consolidation
• True Sale
• Investment Company Act
Credit Information (Sponsored by Lorman Education Services)
- CLE
- CPE
- NASBA
For Detailed Credit Information page
click here
Only registered attendee will receive continuing education credit.
Faculty
Alan S. Dubin, Arent Fox LLP
- Partner with Arent Fox, LLP, Washington, DC (since 1986)
- Practice emphasizes financing transactions of all kinds, including cash-flow lending, real estate lending, asset based lending, equipment financing, and leveraged acquisition lending
- Mr. Dubin regularly conducts seminars and workshops about financing transactions, Article 9 of the Uniform Commercial Code, and closing opinions
- Author of several articles on various commercial law issues
- Adjunct Professor, The George Washington University Law School, teaching Secured Transactions
- University of Rochester, BA (History and Political Science)
- J.D. degree, Order of the Coif,George Washington University Law School
- Can be contacted at alan.dubin@arentfox.com or 202-857-6042
(Not available outside the US)