Be Sure You Secure The Property You Need To Back Up A Family Business Loan

In Diotallevi v. Diotallevi, 2013 IL App (2d) 111297, http://www.state.il.us/court/Opinions/AppellateCourt/2013/2ndDistrict/2111297.pdf (Ill. App., 2014), the court denied claims by relatives of a divorced couple to two land trust properties that were made more than five years after the relatives made loans to the couple for their tree nursery business. The couple formed an LLC including the…

Third Party Fraud Is No Defense To A Bank’s Mortgage Rights, If You Sign Away Your Property And Don’t Record Your Liens

In Stump v. Swanson Development Co., 2014 IL App (3d) 110784, http://www.state.il.us/court/Opinions/AppellateCourt/2014/3rdDistrict/3110784.pdf, Feb. 10, 2014, the court held that a Mr. Stump had been induced to sign a deed to some real estate by fraud, and held that two individuals were liable for failing to include Mr. Stump in a limited liability company, and for…

Arbitration Provisions In LLC Agreements Are Enforceable, Even If Other Terms Are Not

The Ritz-Carlton Management Company (RCMC) was able to compel arbitration as provided for in a condominium association LLC operating agreement, even though condominium owners alleged the agreement was unconscionable, and that RCMC had committed fraud. (Ritz-Carlton Mgmt. Co. v. Ass’n of Apartment Owners of Kapalua Bay Condo. (D. Haw., 2013), rehearing denied, http://www.gpo.gov/fdsys/pkg/USCOURTS-hid-1_13-cv-00055/pdf/USCOURTS-hid-1_13-cv-00055-1.pdf ) The…

FINRA Proposed Limited Registration For Capital Finders

The Financial Industry Regulatory Authority (FINRA) has proposed a limited form of registration for persons and organizations involved in finding capital for business deals. The title for such brokers would be “Limited Corporate Financing Brokers”, and the proposal is Regulatory Notice 14-09, available at  http://www.finra.org/Industry/Regulation/Notices/2014/P449587 “Finders” regulation has been an active topic of conversation in…

Phase I Hazardous Land Conditions Study Standard Approved By USEPA

The US Environmental Protection Agency issued rules December 30, 2013 approving the American Society for Testing and Measurement (ASTM) E1527-13 standard practice for Phase I environmental site assessments. This is an “all appropriate inquiries” standard, which defines and limits what types of site conditions require inquiry, allows parties to rely on agency letters indicating they…