In The News

Bonelaw Client Studio Bank Takes Steps Towards Formation

Congratulations to our client, Studio Bank (In Organization), whose incorporators this week filed notice with the Tennessee Department of Financial Institutions of its intent to apply for a banking charter.

Charles W. Bone, Trace Blankenship, and Chris Raybeck, members of Bone McAllester Norton’s Corporate and Banking/Financial Services teams, serve as corporate counsel to the new bank in organization and have been working closely with Aaron J. Dorn and the other founders for over a year on this exciting new chapter in the history of Tennessee’s banking industry. Among other things, the Bone McAllester team has provided guidance to the founders on strategic matters, board composition and governance, securities offerings and capitalization, and real estate negotiations. This is the first regulatory filing in the process of becoming a bank and opening their doors for business. Studio Bank (In Organization) would be the first true de novo headquartered in Nashville since 2008 – one that is not part of a corporate reorganization, merger or acquisition.

Bone McAllester Norton’s banking and financial services group has a diversified and comprehensive financial services practice representing all types of financial institutions and working with management on virtually any business issue that a financial institution may encounter. Our lawyers have been providing advice to banks, bank holding companies, mortgage companies, and all types of financial institutions throughout Tennessee and the southeast for some 40 years.

Learn more about our Banking and Financial Services group.

To read more about the future of Studio Bank (In Organization) click on these links:

Pat Emery and Matt Kisber among organizers of Nashville's Studio Bank", The Tennessean, August 24, 2017

It's official: Nashville's upstart bank files notice with regulators", Nashville Business Journal, August 24, 2017

Studio Bank founder rolls out big-name board", Nashville Post, August 24, 2017

Sean Kirk Will Discuss Pursuing Deficiency Judgments After a Foreclosure Sale at the Upcoming Tennessee Real Estate Law Conference

Bone McAllester Norton attorney Sean C. Kirk is on the faculty of the sixth annual Tennessee Real Estate Law Conference, presented by Tennessee Attorneys Memo. Sean’s presentation, “Pursuing Deficiency Judgments After a Foreclosure Sale in Light of Greenbank V. Sterling Ventures LLC,” will give background on the prior “grossly inadequate” standard, as well as on the TCA 35-5-118, and then will present facts on the Greenbank decision, including the analysis of the “materially less” standard and how the impact of the court’s decision affects lenders.

The one-day learning and networking CLE event is scheduled for Friday, October 4, 2013 at the Nashville School of Law.

For more information on this event and to register, click here.

 

Bone McAllester Norton PLLC is a full-service law firm with 36 attorneys and offices in Nashville and Sumner County, Tennessee. Our attorneys focus on 17 distinct practice areas, providing the wide range of legal services ordinarily required by established and growing businesses and entrepreneurs. Among our practices, we represent clients in business and capital formation, mergers and acquisitions, securities matters, commercial lending and creditors’ rights, commercial real estate and development, governmental regulatory matters, commercial litigation and dispute resolution, intellectual property strategy and enforcement, entertainment and environmental matters. Our client base reflects the firm’s deep understanding and coverage of today’s leading industry and business segments. For more information, visit www.bonelaw.com.

 

EPA Issues New Vapor Intrusion Guidance

The United State Environmental Protection Agency (EPA) issued vapor intrusion guidance last week that presents recommendations for how to identify and consider factors when assessing vapor intrusion, making risk management decisions and implementing mitigation pertaining to this potential human exposure pathway. This new guidance may affect real estate developments and acquisitions.

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Bone McAllester Norton PLLC is a full-service law firm with 33 attorneys and offices in Nashville and Sumner County, Tennessee. Our attorneys focus on 16 distinct practice areas, providing the wide range of legal services ordinarily required by established and growing businesses and entrepreneurs. Among our practices, we represent clients in business and capital formation, mergers and acquisitions, securities matters, commercial lending and creditors’ rights, commercial real estate and development, governmental regulatory matters, commercial litigation and dispute resolution, intellectual property strategy and enforcement, entertainment and environmental matters. Our client base reflects the firm’s deep understanding and coverage of today’s leading industry and business segments. For more information, visit www.bonelaw.com.

Bonelaw Attorneys Involved in Court Decision of “Materially Less” in Foreclosure Sales

Tennessee Court of Appeals Issues First Opinion Examining Tennessee Deficiency Judgment Statute
Background:  In the wake of the real estate market collapse, the Tennessee legislature passed, effective September 1, 2010, a statute dealing with deficiency judgment on real property after a trustee’s or foreclosure sale. The statute created a rebuttable presumption that the amount bid at a foreclosure sale equal the fair market value of the property. Debtors could overcome this presumption by showing that the bid was “materially less” than the fair market value.

Case:  Bone McAllester Norton PLLC attorneys David Anthony, Sean Kirk and Tucker Herndon represented the Lender who filed suit to obtain a judgment for the deficiency against the Borrower and Guarantors ( the “Defendants”) after completion of foreclosure against the real property collateral. The Defendants contested the foreclosure sale price as being materially less than fair market value. On a motion for summary judgment filed by the Lender,  the Trial Court and Tennessee Court of Appeals examined the deficiency statute and decided what “materially less” means.  The phrase “materially less” had never been used in any other Tennessee statute or court opinion.

The Lender purchased its own collateral at foreclosure for a mid-range bid based upon a current appraisal. Based upon an Affidavit, the debtor asserted that the fair market value of the property was greater. On Motion for Summary Judgment, the Trial Court held in favor of the Lender that a sales price of 89% - 91% of the recent appraisal was not “materially less.”

On appeal, the Tennessee Court of Appeals agreed with the Bone McAllester Norton PLLC attorneys, affirming the Trial Court decision on summary judgment, finding that the foreclosure bid price of 89% of the highest appraisal was not “materially less” and finding that the debtor had failed to raise sufficient facts to present a defense to summary judgment and the deficiency lawsuit.  The Court did not set a bright line percentage above or below which the statutory presumption is rebutted.

Lenders are well advised to continue the practice of obtaining current appraisals prior to foreclosure and base the foreclosure bid price on the current appraisals, taking into account costs of foreclosure and costs of owning the property.