In this issue of Community Banker we discuss bankruptcy.
Some days, it seems like the bad old days are here again. North Dakota’s oil and ag economy was doing so well, or well enough, for at least a decade that many lenders have not had to deal with a customer bankruptcy. Those days are over for many banks, and lenders are getting a crash course in a fairly complex area of law. When reviewing a bankruptcy file or a potential bankruptcy file, it’s crucial for the lender to consider different issues that could affect the lender’s claim and may arise while your customer is in bankruptcy. Those issues may include, in no particular order of importance, preferences, equitable subordination, and the automatic stay.
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The Community Banker is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to firstname.lastname@example.org.