X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Commercial-Real-Estate-Article-201710241521During the past few months several New York cases involving UCC sales of equity pledged to secure mezzanine loans have underscored whether the concept of commercial reasonableness may apply differently during the COVID-19 pandemic. A typical mezzanine real estate loan structure involves a loan made to a mezzanine borrower that owns all of the equity interests in a special purposes entity (often a limited liability company) that in turn owns a commercial real estate property. The mezzanine borrower pledges its equity interest in the property owner as collateral to secure the mezzanine loan. When a default arises under the mezzanine loan the lender may seek to sell its collateral under the UCC, provided, however, that every aspect of a disposition of collateral, including the method, manner, time and place and other terms of sale must be commercially reasonable. See N.Y. U.C.C. §9-610(b)

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 1 article* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Law Firms Mentioned

 

America's Claims Executive Virtual Leadership Forum & Expo 2021Event

ACE Virtual Leadership Forum & Expo is the annual conference for Senior Claims Executives in Insurance organizations.

Get More Information
 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.