Lenders frequently structure commercial loans to include guaranties by third parties with a personal or financial interest in the borrower. Yet, lenders are often unaware of the emerging complexity of the law concerning guaranties and third-party pledges. Since the financial crisis of 2008, lenders have encountered strong opposition to their efforts to collect on guaranties. Guarantors have challenged the enforceability of guaranties under a number of theories, the most popular being the sham guaranty argument. To minimize the effect of these challenges, it is important that lenders have a clear and comprehensive understanding of the functions and elements of a guaranty, as well as the potential defenses to enforcement of a guaranty, all of which are essential to the proper negotiation of guaranty obligations.

 

Join us for this informative Webinar as we discuss the use of guaranties in the lending world. This Webinar will include a discussion on the various types and uses of a guaranty and the elements of a guaranty, with a focus on the importance of guarantor waivers and ways of avoiding sham guaranty challenges.

Aldrich & Bonnefin, PLC is pleased to invite you and your operations personnel to attend our Webinar on “Check Fraud: Rights, Responsibilities and Liabilities.” It is no secret that there has been an overwhelming increase in check fraud over the last couple of years and financial institutions are struggling to understand their rights, responsibilities, and ultimately liability.

 

Despite advances in technology which enable new alternative payment systems, customers are still writing checks but, on the positive side, the check collection laws have finally started to adapt to improve the speed of the electronic check collection process. Of course, this means the responsibility for forged and altered checks has also been evolving to shift responsibility where appropriate.

 

At this Webinar, we will discuss the application of the UCC’s traditional allocation of liability for forged and altered checks as well as Regulation CC’s updated warranties and indemnities for checks collected electronically. Our discussion will include an analysis of whether the paying bank or the depositary bank is ultimately liable when fraud occurs. Finally, we will examine the common defenses that may be available.