Pub. 10 2020-2021 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S www.coloradobankers.org 14 • Obtain the borrower’s re- affirmance of the debt and amounts owing • Resolve existing loan documentation issues (e.g., collateral description or perfection issues, missing signatures) Loan Enforcement/Litigation • Involve legal counsel • Implement a “litigation hold” to prevent the alteration or destruction of relevant documents, paying close attention to electronically stored documents • Organize and review the loan file and all records relating to the loan • Compile and review emails and text messages to and from the borrower and internal emails concerning the loan • Identify and interview all bank representatives with knowledge of the loan or dealings with the borrower • Instruct all employees not to discuss the loan outside the presence of counsel • If the bank has charged off the loan, then payoffs should be separately tracked in the same manner as before the charge off • Determine where litigation will be filed based on dispute resolution provisions in loan agreements and legal requirements Scott Sandberg is a partner at Spencer Fane LLP in the firm’s Denver office. He is a commercial litigator who represents clients in trials, arbitrations, appeals and emergency injunction pro- ceedings. For financial services clients, Scott represents lenders and servicers in a broad array of matters, including ag finance, loan recovery, lien priority and lender liability. Reach your customers with print. To advertise in this magazine contact us today. 801.676.9722 | 855.747.4003 thenewslinkgroup.org Cut through the noise with a more authentic experience. continued from the previous page • In the event of claims asserted against the bank, determine whether the bank has insurance covering defense or indemnity for the claim • Identify any COVID-19 restrictions on loan enforcement (e.g., foreclosure timing or notice requirements or moratoriums) n