LEGAL EAGLE SPOTLIGHT Lenders’ Rights in Single Asset Real Estate Cases By Lindsay Doman and McKay Holley, Spencer Fane LLP Lenders frequently provide financing for borrowers who are single asset entities. Often, those entities exist to (1) hold title to real estate that is the collateral for the underlying loan, and (2) collect income generated from that collateral. In bankruptcy, these entities are designated as single asset real estate (SARE) debtors. Congress created special rules to address SARE cases, which offer lenders certain protections that otherwise would not exist in a normal bankruptcy case, including an expedited timeframe that requires a SARE debtor within 90 days of the bankruptcy petition to propose a Chapter 11 plan of reorganization or make interest only payments. 18 | The Show-Me Banker Magazine
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