Workouts, Foreclosure & Bankruptcy (2 or 3) (LND 605)

 Professors Marshall Tracht and Andrew Berman

This course examines the rights and remedies of mortgagors and mortgagees when a real estate project is in or near foreclosure, including substantive and procedural elements of foreclosure law, the primary bankruptcy issues that affect real estate projects, and, against this doctrinal backdrop, the negotiation of workout agreements. Specific topics will include the lender’s remedies (receivers, assignments of rent, foreclosure) and sources of leverage (recourse versus nonrecourse lending, carve-out provisions, standby letters of credit and personal guaranties), borrower defenses and lender liability, bankruptcy considerations (the automatic stay and adequate protection, single asset bankruptcy provisions, bankruptcy proofing, third party injunctions, leasehold termination, and cram-down), and business considerations and legal issues in restructuring agreements.