Blockchain and Financial Services Blog

What a Collection Lawyer Should Know About a Client’s Information Management Systems

A collection litigator’s communications with the client include receiving and seeking information. That work is facilitated if counsel has a basic understanding of the lender’s information management systems. Experienced litigators adapt their client communications and court filings to obtain and use the information lender clients can reasonably provide. Understanding the lender’s information management systems also enables counsel to avoid onerous information requests to clients.   Read More ›

Cryptocurrency or a Security? Only the Jury Knows for Sure

As anyone launching an initial coin offering (ICO), token-generation event or whatever else they want to call it knows well—whether a token offering is a security or a cryptocurrency is a hot topic. The SEC seems to indicate many tokens are securities, while FinCEN says cryptocurrencies. Until recently, few courts have had the opportunity to weigh in on the matter. But on September 11, the United States District Court for the Eastern District of New York, in United States v. Zaslavskiy, issued a Memorandum & Order (the "Order") on the defendant’s motion to dismiss. Read More ›

Planning Commercial Collection Litigation: A Primer

Consider the common commercial loan collection situation: a business debt collateralized by relatively permanent collateral (real property or durable non-mobile equipment such as a printing press) and transient collateral (inventory, accounts receivable and cash).[1] Frequently, there is also potentially recoverable unsecured debt because the collateral is insufficient to pay the entire debt and (a) the collateral does not include all the borrower’s assets so it is possible to collect the unsecured debt from the borrower, and/or (b) there are unsecured guarantees[2] supporting the credit. What is counsel to do when the time[3] arrives to plan litigation? Read More ›

Bankers, Bitcoins And the Bank Secrecy Act - A Webinar about Business Opportunities & Risks

SAVE THE DATE: August 28, 2018, at 3:00 p.m. EST

The growing importance of blockchain businesses, and particularly crypto currencies, is undeniable. Like every other important disruptive technology, think of the internet for example, there will be winners and losers among the early adopters, and serious business opportunities for “traditional” banks open to serving participants in the space. To be successful, it will be essential for crypto businesses to find financial institutions to serve their banking needs, such as the deposit of fiat money, the transfer of payments from customer and to creditors and suppliers, and potentially lending needs. But for now, while most bankers are interested, they are also worried about banking this industry of tomorrow. However, as the banking industry has proven over its long history, bankers will master the risks and rewards of servicing this new industry, and in doing so will come the capture of new sources of fee income and loan revenue. Read More ›

Ohio Enacts Law Acknowledging Blockchain Transactions and Granting Safe Harbor Protections to Eligible Businesses from Data Breach Claims

On Friday, August 3, Governor Kasich signed Ohio Senate Bill 220, which acknowledges for the first time the legitimacy of blockchain transactions as enforceable electronic transactions and creates an affirmative defense to tort actions against eligible businesses for claims relating to data breaches. The law goes into effect in 90 days. Read More ›

A Thoughtful Bankruptcy Lawyer’s Opportunity to Anticipate

A lawyer’s usual task is to help solve the client’s current problem: resolve a dispute; close a loan; obtain a permit; avoid a conviction; etc. Lawyers are so task oriented that some consultants advise us to have task specific engagement understandings and send dis-engagement letters when a task is complete. For bankruptcy lawyers representing individuals in a Chapter 13 bankruptcy, the task at hand is getting clients to and through a confirmed Chapter 13 plan with the promised debt relief and fresh start. Read More ›

Entity Receiverships and the Dangerous Federal Priority Statute

Lawyers representing creditors often compete with federal government claims against the same insolvent borrower/debtor.  There are several common federal statutes that impact these disputes including: 11 U.S.C. Section 507[1]; 26 U.S.C. Section 6321[2], et seq.; and 31 U.S.C. Section 3713.  Read More ›

Ohio’s Administrative (Not Judicial) Income Tax Liens

A federal tax lien arises when the Internal Revenue Service takes administrative action to note in its records that the taxpayer owes taxes – that is to say, when the tax debt is “assessed.” That lien attaches to all the taxpayer’s property and equitable rights to property as determined by relevant state law. 28 U.S.C. Section 6321. See https://www.blockchainandbanking.com/irs-liens-after-acquired-property-and-the-doctrine-of-choateness. Typically, assessment occurs when (i) the taxpayer files a return, (ii) the IRS adjusts a tax liability after an audit / appeal process, or (iii) the IRS files a “substitute return” for a taxpayer who failed to file a required return.[1]

[1]             See, Internal Revenue Manual section 4.12.1.1 titled “Nonfiled Returns.” Read More ›

Joinder of Claims in Commercial Foreclosure Litigation is a Choice

A prior blog post analyzed Green Tree Servicing v. Asterino-Starcher, et al., 2018-Ohio-977 (Franklin Cty. App., March 15, 2018), which advises, in part, “[a] foreclosure proceeding is a two-step process involving, first, the enforcement of a debt obligation, and, second, the creditor's right to collect against the security given by the borrower for that debt. . . . There is reason to distinguish the action on the note from the ensuing action against the associated collateral. The first claim involves only the maker of the note and the person entitled to enforce it. The second joins all those with an interest in the mortgaged property.” This article discusses what happens if a secured lender believes that quote and tries to collect the mortgage debt through two separate lawsuits. Read More ›

Appeals in a Foreclosure Case, an Empty Right in Ohio?

Foreclosure cases often proceed without participation or significant defense by the obligor / mortgagor because that party is without both any defense and any funds to pay counsel. That happened in Green Tree Servicing v. Asterino-Starcher, et al., 2018-Ohio-977 (Franklin Cty. App., March 15, 2018). In Green Tree Servicing, as sometimes occurs, a junior lienor had the motivation and resources to contest the foreclosure.[1]  Read More ›

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Attorney Spotlight

William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.

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