Bose Means Banking (and Breakfast): Strategies for Handling Troubled Farm Loans in 2017

Banks provide an important link in the food chain by helping farmers with the money to buy new equipment, purchase seed, sustain livestock, maintain and improve buildings, and pay employees when cash flow is weak.  Unfortunately, the cash flow for farms sometimes does not improve, even with support from the bank and the best of intentions by the farmer, leaving both the farm and bank in less than ideal circumstances.  At the next Bose Means Banking (and Breakfast) seminar, attorneys Jim Carlberg, Jim Moloy and Wes Overturf will offer strategies banks can use to deal with troubled farm loans.

The seminar will be offered as a webinar, as well as live at the Bose McKinney & Evans office.  For those who register for the webinar, login information will be sent to participants the day prior to the event.

Reservations are required and limited to lenders only.  Click here for more information and to register.

Wednesday March 1, 2017
8-9:30am (EST)
8-8:30am – Registration for the in-person event
8:30-9:30am – Program / Webinar

Bose McKinney & Evans LLP

111 Monument Circle
Suite 2700
Indianapolis, IN 46204

Crop security interest issues

  • 2002 UCC Amendments
  • Changes relating to Notice to Grain Buyers
  • Can an input supplier obtain a Purchase Money Security Interest (“PMSI”) in crops?
  • Is crop insurance “proceeds” of crops?

Issues relating to improper sale or dispositions of collateral

  • Default demand letter should emphasize that dispositions of collateral are not proper
  • What remedies does a lender have against its borrower for sale of collateral?
  • What remedies does lender have against the purchaser of the collateral?
  • Issues relating to farmers circumventing the “Notice to Buyers”

Mortgage foreclosure issues

  • When should a lender seek the appointment of a receiver in a foreclosure action?
  • Can a receiver sell real estate during a mortgage foreclosure?
  • When should the lender seek to have a foreclosure sale conducted by an auctioneer?
  • Does “Help-Hope” apply when the loan covers farmland and a residence?

Chapter 12 bankruptcy issues

  • Cash collateral issues – when can a farmer use last year’s crop proceeds for current year expenses?
  • Adequate protection requirements relating to mortgages
  • Adequate protection issues relating to equipment collateral

Chapter 12 – unique farmer provisions

  • Maximum debt limits for Chapter 12
  • Land adequate protection payments
  • No absolute priority rule
  • Interest rates in bankruptcy plans
  • Feasibility issues relating to farmers

Jim Carlberg
Jim Moloy
Wes Overturf