Over the last several years, credit unions have entered the commercial loan arena and are now encountering various aspects of the default and collection process. There are important elements involved with commercial debts that distinguish them from run-of-the-mill consumer matters. Some examples include:
Personal Guarantees. These are one of the most important aspects of a commercial loan (from a collection point of view). The odds of collecting a commercial loan that has gone bad are very dramatically increased with one or more personal guarantees. These documents must be appropriately drafted and properly executed to have the desired legal impact.
UCC Filings. Article 9 of the uniform commercial code provides a method to place liens on personalty other than titled vehicles or vessels. The process is quite different than the normal DMV filing, but can dramatically enhance the value of the loan, and potentially collectibility, if done properly.
Commercial cases can be lucrative, or disastrous, depending on your documentation and the quality of the law firm that handles them. It is very important that when referring work of this nature to counsel that experienced attorneys be involved. Hiday & Ricke has represented substantial clients in commercial collection matters throughout the state of Florida for over 30 years. Please feel free to contact us with any questions you may have regarding your commercial portfolio.