Verified Document

Secured Trans Lasalle Bank, N.A. V. Cypress Essay

Secured Trans LaSalle Bank, N.A. v. Cypress Creek 1, L

Secured transactions are relatively commonplace and generally well understood, however certain scenarios can emerge that challenge legal minds and legal precedents to offer an appropriate solution. Article 9 of the Uniformed Commercial Code governs this type of transaction, in which the lender obtains a security interest in certain goods or property owned by the borrower and becomes owner (or part owner) of this collateral should the borrower default on the loan payments, but this law is not necessarily enough to adequately determine the outcome in every situation (Cornell, 2012). A recent case in Illinois illustrates the complexities that can occur when more than one party has a security interest in a property, and there isn't enough value in the property to satisfy all claimants. In such situations as these, more common in the recent years of economic turmoil and the accompanying downturn in the housing market and construction industries,...

v. Cypress Creek 1, LP are relatively straightforward: LaSalle Bank extended a mortgage to property developer Cypress Creek of just over eight million dollars for the purchase of land and the construction of residences on that land (Glazov et al., 2011; WestLaw, 2011). Cypress Creek hired contractors for the development of the land and the construction of residences before coming to a point of financial insolvency and abandoning the project, with payments on the mortgage still due to LaSalle Bank and money for construction still owed to at least two contracting companies (Glazov et al., 2011; WestLaw, 2011). The property itself was not worth the remaining balance on the mortgage (Glazov et al., 2011).
Due to the default status of Cypress Creek, the developer, LaSalle Bank naturally moved to acquire the property it held a mortgage on, foreclosing on the property, however the contractors had established…

Sources used in this document:
References

Cornell. (2012). Uniform Commercial Code, Article 9. Accessed 4 March 2012. http://www.law.cornell.edu/ucc/9/overview.html

Glazov, J., Smith, S. & Eisenberg, D. (2011). Construction Lenders Prevail in Controversial Illinois Mechanics Lien Priority Case. Accessed 4 March 2012. http://www.natlawreview.com/article/construction-lenders-prevail-controversial-illinois-mechanics-lien-priority-case

WestLaw. (2011). LaSalle Bank, N.A. v. Cypress Creek 1, LP. Accessed 4 March 2012. http://www.constructionlawtoday.com/uploads/file/LaSalle%20Bank%20v%20Cypress%20Creek.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Bank of America Leadership Overview of Corporation
Words: 1867 Length: 5 Document Type: Case Study

Bank of America Leadership Overview of Corporation Bank of America Corporation, a multinational banking and financial services organization that is the second largest holding company in the entire United States by assets, and the fourth largest bank by capitalization. Headquartered in Charlotte, North Carolina, the banks serves clients in more than 150 countries and has a business relationship with over 99% of U.S. Fortune 500 companies and 83% of the Fortune Global

Bank of America Built Its Success by
Words: 883 Length: 3 Document Type: Case Study

Bank of America built its success by leveraging different elements of bank deregulation to grow the company into a national bank in the U.S., one of the country's largest. The driving force behind this success was visionary leadership at the top of the company and the ability to integrate a high growth platform with multiple acquisitions at the more functional managerial levels of the company. Thus, the company's leadership development

Banks Improper Foreclosure and Mortgage Practices in
Words: 2595 Length: 8 Document Type: Research Paper

Banks Improper Foreclosure and Mortgage Practices in the Banking Industry Efficient Market Hypothesis Real Estate Bubble Sub-Prime Mortgages Overview on the Value of Banks Arguments against Financial Intermediaries Ethical Violations This research paper aims to shed light into what led to the global financial collapse that, for the most part, began in the U.S. housing market and the ethical implications that followed. Many researchers agree that the primary drivers that led to the real estate crisis was the

Bank Manager a Business Report on the
Words: 1714 Length: 6 Document Type: Essay

Bank Manager A business report on the forecasted analysis of EcoGenics, Inc. Company with two products EcoGenics, Inc. Authored by: A business report on the forecasted analysis of EcoGenics, Inc. Company with two products Company overview Product cost estimate Variable costs Fixed Costs Selling Price estimate Cost plus price Market Price Break even analysis per product Company Break-even five year financial projection operational budgets five year income statements investment appraisal net present value environmental impact reflective About Our Company EcoGenics is a United States of America-based company that specializes in the manufacture and

Bank of International Settlement Bank for International
Words: 635 Length: 2 Document Type: Essay

Bank of International Settlement Bank for International Settlement The Bank of International Settlement was founded in 1930 after World War I by a group of central international banks. The purpose was to promote cooperation of central banks, provide additional facilities for international operations, and to act as a trustee or agent in regard to international financial settlements. (Wood, 2005) It was designed to be the bank of central banks. It was given

Bank of America Is a
Words: 2991 Length: 10 Document Type: Research Paper

S. The bank expanded into the Chicago market. Bank of America, with a strong California base, was already the largest bank in the U.S. By deposits at that time. The company completed the largest bank merger in U.S. history with the acquisition of NationsBank. The next major step was the 2004 acquisition of FleetBoston, followed by MBNA, a major credit card company. The bank began to expand outside of the U.S.

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now