Recent Articles

POSTPONE CONSTRUCTION UNTIL AFTER THE MORTGAGE HAS BEEN FILED

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< Commercial construction appears poised to further accelerate in 2014, as the business outlook continues to improve. A building owner, having completed the necessary due diligence for a construction project, naturally wants to begin construction immediately. Owners who are financing the construction through a loan should be cautious, however, before allowing a contractor to begin […]

CAN A LENDER OBTAIN A COGNOVIT JUDGMENT FOR FORECLOSURE OF A MORTGAGE?

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Introduction Nearly every promissory note for a commercial banking loan, or a commercial real estate loan, to an Ohio borrower includes a “warrant of attorney” authorizing an attorney to confess a judgment against the borrower without prior notice to the borrower. The warrant of attorney is similar to a power of attorney. A written guaranty […]

COMMERCIAL CONSTRUCTION LOAN DOCUMENTS IN OHIO: A PRIMER

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< Introduction Yes, financial institutions are making commercial construction loans to build or renovate apartment buildings, office buildings, retail centers, and other commercial projects, but not to the extent undertaken in the boom years of 2002 to 2007. Hopefully, commercial construction will steadily increase, as real estate investors willing to take a risk seek new […]

YOU CAN’T FORECLOSE OUT THAT OIL AND GAS LEASE!

Survival of an Oil and Gas Lease After a Sheriff’s Sale

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<para>Examining a title insurance commitment before the closing of a mortgage loan in Ohio is standard practice for a loan officer and/or the attorney representing the lender in the transaction. When a lender examines a title insurance commitment, he or she accepts that the new mortgage will be subordinate in priority to existing easements and, […]

Common Forms of Business Organization in Ohio

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Introduction A business operating in the State of Ohio may take one of several forms of organization. The most common forms of organization (not necessarily in the order of their popularity) are sole proprietorship, general partnership, limited partnership, limited liability company, and corporation. This article will provide a brief outline of those forms of organization. […]

Be Careful of Promising Too Much When Closing a Loan

It’s always a good idea for loan officers, and other bank employees involved in the loan origination process, to make sure that their representations to potential borrowers do not contradict the conditions of the loan commitment or term sheet, or the language of the bank’s loan documents. In a recent case decided by the Cuyahoga […]

SURETYSHIP DEFENSES IN OHIO

Defenses Asserted by Co-Signers and Guarantors

Guarantors and co-signers in Ohio have certain defenses available to them when faced with enforcement actions by lenders

Attachment and Pre-Judgment Garnishment in Ohio

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<sec><heading>Introduction</heading></sec><sec><heading>A creditor that seeks to collect his or her judgment in Ohio has several remedies, the most common being garnishment of personal earnings or bank accounts, foreclosure on a certificate of judgment lien, and a sheriff’s execution and sale of the judgment debtor’s personal property. But what if a creditor has not yet obtained a […]