Commercial Real Estate Financing 2009: How the World Changed

Overview

Recently admitted NY attorneys: This program is accredited for transitional CLE credit

Why You Should Attend

After a decade of exuberance, commercial real estate financing entered a new cycle in late 2007, a cycle that has continued in 2008. This seminar will explore the consequences for borrowers and lenders and their counsel. A faculty of seasoned practitioners will help you update your legal knowledge since the last downturn. The speakers will explore categories of distress and how borrowers and lenders might respond. The program will also look at some bright spots and new developments in the commercial finance market, always focusing on practical solutions to real-world problems.

What You Will Learn

• Receive strategies for selling a loan, and how the process changes when a loan encounters distress or default
• Learn from experts what a borrower should do when a loan is heading toward trouble
• Now that LLCs have been the vehicle of choice for over a decade, come away with what we can learn from reported cases
• Examine Islamic financing - and the deal structures and documents you need to know about
  plus
• Focus on workouts and defaults - before and after acceleration
• Coverage and documentation requirements for insurance
• Get tips on how construction loans go wrong
• Explore the special problems and issues of syndicated loans
• Analyze an ethics case study - and receive an hour for your CLE ethics requirements

Who Should Attend

Real estate attorneys, executives, in-house counsel, investment bankers who acquire and sell real estate, asset managers and acquisition managers.

Special Features

Live Webcast - Simultaneous live webcast of the San Francisco, January 29-30, 2009 session is available for individual viewing. Webcast participants will receive streaming audio and/or video of the program, view and print the Course Handbook, and have the ability to submit questions electronically.

For more information click on the Live Webcast link in the Related Items box.

Special Bonus to all Registrants

All attendees will receive a complimentary copy of PLI's comprehensive Course Handbook. This softcover, bound volume was written to augment the program and to stand alone as a permanent reference. PLI's Course Handbooks represent the definitive thinking of the nation's finest legal minds, and are often the standard reference in the field.

Please Note: Webcast attendees will receive a downloadable version of the Handbook one business day prior to the program.

PLI Group Discounts

Groups of 4-14 from the same organization, all registering at the same time, for a PLI program scheduled for presentation at the same site, are entitled to receive a group discount.  For further discount information, please contact membership@pli.edu or call (800) 260-4PLI.

PLI Can Arrange Group Viewing to Your Firm

Contact the Groupcasts Department via email at groupcasts@pli.edu for more details.

Cancellations

All cancellations received 3 business days prior to the program will be refunded 100%. If you do not cancel within the allotted time period, payment is due in full. You may substitute another individual to attend the program at any time.

Schedule

Please plan to arrive with enough time to register before the conference begins. A continental breakfast will be available upon your arrival.

DAY ONE: 9:00 a.m. - 5:00 p.m.

Morning Session: 9:00 a.m. - 12:30 p.m.

9:00  Introduction

Peter A. Sarasek

• Rules of the game
• Coverage and documentation requirements 
• Market conditions 
• Hurricanes, bid rigging and other problems 
• Additional insureds 
• The closing process:
   - Insurance review
   - Certificates
   - Interaction with loan documents

• Philosophical underpinnings of Islamic finance and how they get translated into: 
   - Deal structures
   - Documents
• Problem areas and negotiations

• Strategies to deal with lenders and other investors when a property gets into trouble

• Status of regulatory effort for “persons involved in real estate closings and settlements”
• Crucial language for your real estate documents
• The Gatekeeper Initiative - how will it affect you?
• Client due diligence requirements
• Penalties and consequences for noncompliance

• New ALTA policy forms 
• Choices of endorsements for major commercial transactions
• Recent regulatory initiatives and how they might affect title insurance pricing and service
• Tales from the trenches in the claims department

• Issues in negotiating a loan purchase and sale agreement
• Closing requirements
• Representations and warranties

• Problems within lender syndicates
• Enforcement of remedies
• Creation of A/B loans and the issues they raise

• Where the problems have arisen
• How the courts have responded
• How transactional lawyers should take those responses into account in the next transaction

• Revival and expansion of an ancient principle in courts across the country 
• Tools to use against defaulting borrowers, even under nonrecourse loans 
• Recent cases, and what they mean for borrowers and lenders 
• The Restatement’s approach

• How the courts have responded to today’s wave of foreclosures, including a discussion of recent residential foreclosure cases with lessons for commercial mortgage lenders

• Pre-workout agreements
• Lender liability risks
• Common deal terms in mortgage loan workouts and the legal issues they raise
• Deeds in lieu; deeds in escrow
• Cash flow mortgages
• Expedited sales of collateral
• Changes in management
• Lockboxes
• Timing and how to get the deal closed

Afternoon Session: 1:45 p.m. - 5.00 p.m.

1:45  Troubled Mortgage and Mezzanine Loans and Workouts - After Acceleration

A. Mortgage Loans

• Acceleration and enforcement of mortgage remedies
• Appointment of a receiver
• Mortgage foreclosure process
• Recourse and personal liability

B. Mezzanine Loans 

• How a UCC foreclosure works
• Alternatives to foreclosure; other remedies
• Special risks and issues of acquiring equity interests

• Maintaining the brand in a troubled hotel project
• Management agreement issues
• Renegotiating the management agreement
• Lender’s right to terminate under the SNDA
• Bankruptcy implications
• Rejection of management agreements
• Treatment of hotel revenues in bankruptcy

B. Construction and Development Debacles

• The special problems of incomplete projects
• Condominium development
• Alternatives
• The lender’s strategies
• How a borrower might respond

• Analysis of case study by Anne Reynolds Copps and Joshua Stein

Anne Reynolds Copps, Peter A. Sarasek

5:00  Adjourn

Faculty

Chairperson(s)

Speaker(s)

Program Attorney(s)

CLE Credit

Travel Information

Chicago Seminar Location

University of Chicago Gleacher Center, 450 N. Cityfront Plaza Drive, Chicago, Il 60611. (312) 464-8787.

Chicago Hotel Accommodations

Omni Hotel Chicago, 676 N. Michigan Avenue, Chicago, IL 60611. Please contact the hotel directly at 1-800-THE-OMNI or (312) 944-6664. When calling, mention PLI and the name of the program you are attending.

Click this Omni Hotel Chicago link to facilitate the reservation process. You will be directed to the property's customized reservation page for this program.