In Centrum Financial Services v. Union Bank, decided December 17, 2017, the Court of Appeals clarified the limitations on the right of a junior lienholder to cure a default of a senior secured indebtedness. Tom Lerner reminds lenders to use caution when considering whether to foreclose on a second deed of trust.
Stokes Law Briefs
Tom Lerner provides a recap of key foreclosure cases from 2016.
Accelerating a defaulted loan seems almost automatic. There will be times when the statute of limitations may lead to a different decision. Tom Lerner explains that the Court of Appeals holds that the decision to accelerate must be explicitly stated. It is not enough to leave it to be inferred.
On July 25, 2016, in Bero v. Name Intelligence, Inc., the Washington Court of Appeals held that a receivership could be terminated without resolving all timely filed claims. Tom Lerner explains how creditors who want to be sure that their claims are adjudicated in a receivership will have to take a more active role in the litigation than has typically been required.
The Washington Court of Appeals summarized settled law governing the interplay between an installment promissory note secured by a deed of trust, a bankruptcy discharge, and the statute of limitations. Tom Lerner describes how the court also clarified that service of a foreclosure notice of default is enough to stop the statute of limitations from running.
The new Limited Liability Act, effective January 2016, is designed to simplify the process of entity formation and offer greater flexibility in the organizational structure. Practitioners should take this opportunity to re-evaluate their approach to advising clients on formation and management issues to account for changes in the Act.