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Showing 222 posts in Bankruptcy & Banking Law.

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 ›

Danger: “Unlimited” Guaranty Covers Theft Losses Caused By Another

Guarantor was the spouse of a business owner. Spouse’s business opened a deposit account and a disbursement account at Bank 1. Later, Bank1 extended to Spouse’s business a commercial revolving loan with a borrowing limit of $135,000; that loan provided overdraft protection by funding the disbursement account if the business’ account balance went below zero. To obtain the $135,000 loan, Spouse and Guarantor executed an unlimited commercial guaranty. [1] Bank1 and Spouse executed multiple extensions of both the $135,000 commercial revolving loan. Read More ›

A Cautionary Tale: Original Mortgagee’s Modified Loan Prevails Over Second Secured Lender

An Ohio residential loan and mortgage were made and recorded in 2008. After default, a foreclosure case was started, but not completed – it was dismissed without prejudice. Read More ›

Key Points for Bankers Concerning Federal Income Tax Filing Requirements When Discharging a Debt

As the 2015 tax filing season begins, it is important that individuals and businesses understand their reporting and filing obligations under the federal income tax laws.  In certain situations where a financial institution discharges a debt, a Form 1099-C, Cancellation of Debt, must be filed with the Internal Revenue Service on or before February 28, 2015 (March 31, 2015 if electronically filed).  Generally, for debt that was discharged during 2014, a creditor must file a Form 1099-C when the following three conditions are met: (1) the debt discharged was $600 or more; (2) the creditor is an applicable entity; and (3) an identifiable event has occurred. Read More ›

Protecting Your Bank Against Ponzi Scheme Claims Related to Deposit Accounts

When victims of Ponzi schemes, also referred to as fraudulent investment schemes, cannot collect from the persons who committed the fraud and "stole" their money, they often look to the bank that handled the deposit account used in the fraud as the deep pocket for recovery. After the July 30, 2013 decision in Parlin Fund LLC, et al., v. Citibank N.A., Case No. 1:13-CV-111, 2013 U.S. Dist. LEXIS 106511 (S.D. Ohio, July 30, 2013, J. Beckwith), individuals damaged by investing in Ponzi schemes may find it much harder to pursue banks. Read More ›

Sixth Circuit Voids Reaffirmation Agreement under Kentucky Law

                In Salyersville Nat’l Bank v. Bailey (In re Bailey), 664 F.3d 1026 (6th Cir. 2011), Chapter 7 bankruptcy debtors, prior to filing for bankruptcy, obtained a loan from Salyersville National Bank, pledging their home and 40 acres of land as security.  Several years later, the debtors took out a second loan from the bank, this time pledging their truck as security.  After encountering financial difficulties, the debtors eventually filed for bankruptcy in 2005.  Less than a month later, the debtors and the bank entered into a reaffirmation agreement, which committed the debtors to pay the two debts that would have otherwise been dischargeable in bankruptcy.  In particular, the debtors reaffirmed their secured indebtedness in the two loans, and in return, maintained possession of their home and truck. Read More ›

On Account Claim Deficient Where Account Statements Attached To Plaintiff's Complaint Do Not Reflect Purchases And Payments

            In Equable Ascent Fin., LLC v. Christian, 196 Ohio App.3d 34, 2001-Ohio-3791 the Court of Appeals in the Tenth District, Franklin County, reversed a trial court’s order granting default judgment to plaintiff credit card account holder on the grounds that the on account claim filed against Defendant debtor Sue Ann Christian (“Christian”) failed because the credit card statements attached to the Complaint were insufficiently detailed.  Read More ›

Bankruptcy Court For The Northern District Of Ohio Holds That The Ohio Homestead Exemption Applies Only To Parcel Of Land Upon Which Residence Is Situated

The United States Bankruptcy Court for the Northern District of Ohio recently held that under Ohio law, the homestead exemption set forth in Ohio Rev. Code Ann. § 2329.66 applies to contiguous parcels of land only if those parcels are used for a single purpose as the debtor’s homestead.  In re Whitney, 459 B.R. 72 (Bankr. N.D. Ohio 2011). Read More ›

Bankers "Boot Camp" Successful Again

Since 2005, Frost Brown Todd has hosted a 2-day commercial lending training program for our financial institution clients.  This year, we were honored to have 78 of our clients and friends, from three states, attend over March 12 and 13th.  By all accounts this year’s program was the most beneficial and successful yet, until 2013!  Congratulations to Kim Mauer, all the presenters, and to all the bank officers who profited from attending the training. Read More ›

Electronic Banking Security And Risk Analysis Guidance

Hats off to the Texas Bankers Electronic Crimes Task Force, and its study of current best risk minimization practices to deter financial crimes, particularly account takeover attacks.  The report is recommended reading for CIO’s, security officers and fraud investigators, even if their financial institution resides outside of the Lone Star State. Read More ›

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Attorney Spotlight

Vincent E. Mauer represents clients in commercial and business disputes with particular emphasis on financial institutions and instruments, including financial institution bonds, securities, insurance policies and commercial loans.