How to Avoid Lender Liability in Commercial Loan Workouts

Finance and restructuring partner Kayla Britton authored an article for the Indianapolis Business Journal titled “How to Avoid Lender Liability in Commercial Loan Workouts.”

If a lender liability claim is successful, a lender may be liable for losses sustained by the borrower or a third party directly or indirectly caused by the lender’s actions or inactions, or the lender’s deficiency judgment may be waived, Britton explains.

She highlights that lenders should remain mindful of potential exposure and suggests proactive measures lenders can take to minimize their risk. The article outlines and details ten steps for lenders to consider to minimize risk, including developing a strategy, avoiding sudden moves, avoiding inconsistent or misleading communications, keeping good records and more.

The full article is available for Indianapolis Business Journal subscribers.