Justifiable or Reasonable Reliance Under Section 523 of the Bankruptcy Code
Was your reliance justifiable or reasonable when lending money to a dishonest debtor that. later ends up in bankruptcy. Collateral Base Attorney Tom Howard recently helped our client win a $1.8 million dollar verdict in a bankruptcy case out of the Central District of Illinois. The case, liura v. Brady (In re Brady), concerned several […]
Filing Financing Statements and Determining Priority
Determining Priority in Perfected Security Interests Who’s on first? This question decides what creditor gets paid, and what becomes an unsecured creditor whose best option is to recover pennies on the dollar for the money loaned to a business that purportedly had collateral. Priority to collateral needs determination to see who can seize it in […]
What is an Agricultural Lien under the UCC?
What is a UCC Agricultural Lien As we detailed in our introductory article on security interests, a security agreement gives a creditor some form of legal right over the property of a creditor. While this definition is fairly straightforward, there are all kinds of quirks which are unique to agricultural liens. Under the 2001 amendment […]
How Do You Perfect a Security Interest in Agriculture?
A “security agreement” is defined by the Uniform Commercial Code (UCC) as “an agreement that creates or provides for a security interest.” 810 ILCS 5/9-102(a)(74). A security agreement is “effective according to its terms between the parties, against purchasers of the collateral, and against creditors.” 810 ILCS 5/9-201(a). Or, put simply, a security agreement gives […]
Banking For Cannabis Companies in Illinois
Cannabis companies are notoriously tricky clients for banks and credit unions. An innovative program in Illinois hopes to fix that. Cannabis is a classic example of an “underbanked” industry. The tangled and contradictory web of state and federal laws have convinced many banks that cannabis simply isn’t worth the trouble. Illinois hopes to fix that. […]
An Attorney’s Guide to LLC Operating Agreements
If you’re an entrepreneur looking to form a limited liability company (LLC), it’s important to understand the importance of creating an LLC operating agreement. This legal document outlines how your LLC will operate and helps protect your business and its owners. In this guide, we’ll cover everything you need to know about how to create […]
How To Raise Money Through A Private Placement Memorandum
A PRivate Placement Memorandum (PPM) is a complex legal document that provides great detail into a company and offers a portion of its ownership for sale to an investor, often an Accredited Investor as defined under Regulation D for the SEC. Private Placement memorandums could be used to raise capital when a company cannot otherwise […]
Practicing Law Without A License
Practicing law without a license is a terrible idea that happens to some professionals, consultants or real estate agents may go over the line. Be careful when carrying out your professional relationships and know where the line is for what your jurisdiction considers the unauthorized practice of law. In this article – we cover when […]
Illinois Cannabis Zoning Laws
https://youtu.be/1EXFrSeV7lc Illinois Cannabis Zoning Laws depend greatly on the local governments that are placing “reasonable” restrictions on their community’s cannabis businesses that may operated in their jurisdictional limits. Many communities require a “special use permit” for having cannabis business operations. Then, there are certain set-backs to that limit the distance a cannabis company may be from […]
Right of First Refusal
What Is the Right of First Refusal? The right of first refusal (ROFR) in the real estate is a contract that gives a specific right to a party to purchase a particular property. The right of first refusal must have at least three parties: the owner, the buyer, and the option holder. The holder of the […]
