Pub. 9 2020 Issue 4

16 2020 Annual Conference for Lenders THIS YEAR ’ S CONFERENCE WILL BE THE PLACE TO MAP OUT YOUR STRATEGY FOR SUCCESS. October 1-2 Virtual “ Overall great conference covering a variety of issues that I deal with on a day to day basis. ” “ Great Conference. One of the best I have attended. ” Why should I attend? Educational Resources | 785.232.3444 | • Are You a Quoting Machine or a Trusted Advisor? • 2020: The Upcoming Election and the Next Four Years • Will You Be My Customer? - Create Proposals That Guarantee Your Customers Will Say “Yes” • Loan Portfolio Management Tools & Strategies • Building & Sustaining Trust for Lenders • A Commercial Real Estate Apocalypse? How to prepare your bank for its (possible) arrival • Take Off the Mask—Is Your Life Story Worth • Loan Underwriting, Risk Grading, Risk Rating and Risk-based Loan Pricing • Creating a Talent Pipeline for Your Community Bank • Closing the Experience Gap • The 2021 Economy and Beyond • Shifts Impacting Lending - What We Can Do to Prepare - Past Attendees continued from page 15 Entering into forbearance agreements can provide borrowers with essential additional time to resolve their financial challenges (or liquidate key collateral) while simultaneously releasing the lender from any known or threatened lender liability claims. These loan workouts provide golden opportunities to fix any defects the lender may have found in the loan documents. If, despite these preventative measures, a bankruptcy still seems likely, a lender may decide to take more aggressive action to enforce its loan documents such as by sending out turnover letters to account debtors for outstanding accounts receivable or seeking to repossess and liquidate personal property collateral. Alternatively, if the borrower signals bankruptcy is clearly going to happen, the lender may want to proactively negotiate with the borrower a cash collateral order or even provide debtor-in-possession financing which will enable the borrower to continue operating while in bankruptcy but providing the lender with key bankruptcy protections. Once the bankruptcy is filed, the lender should closely monitor the situation and make sure its rights are promptly enforced. Unfortunately, there is not a “one-size- fits-all” approach to SBRA bankruptcy filings. Each is its own unique situation requiring close attention by a lender. But by proactively seeing the problems on the horizon, lenders can take steps now to be better prepared when the storm finally hits them.