Business Law and Lender Liability

This presentation will provide the banker with a basic framework of Business Law including the judicial process. Emphasis will be placed on how the legal system can help/harm the banker including how to avoid a lawsuit due to lender liability through maintaining both “ethical” behavior and effective negotiations.

A review of the stages of litigation, alternatives to litigation including arbitration and mediation, and the borrower’s business structure (from a legal perspective), will be displayed. The program will also cover the nature and characteristics of contracts (the promissory note), problem loan situations, and collection efforts. Additionally, banking regulations and tort reform will be discussed.

The presentation will also cover the concept of Lender Liability including recent industry trends. This portion of the session will address some of the technical aspects of this often overlooked subject.

Topics covered in this session

• The Difference between Law and Ethics and Why It Matters from a Lender Liability Standpoint 
• Negotiations and the Law
• The Judicial Process including the Stages of Litigation
• Alternatives to Litigation including Arbitration and Mediation
• The Borrower’s Business Structure and the Law
• The Nature and Characteristics of Contracts (The Promissory Note)
• Problem Loan Situations (What Happens when a “Good” Loan Turns “Bad”)
• Collections (How Hard Can You Push?)
• Overview of Banking Regulations
• Other Business Law Issues including Tort Reform and Its Impact on the Borrower
• Lender Liability and Recent Industry Trends
• Technical Aspects of Lender Liability

Who Should Attend:

• Commercial lenders
• Relationship managers
• Business development officers
• Branch managers
• Assistant branch managers
• Private bankers
• Credit Analysts