Construction Law Today : Construction Lawyer & Attorney : Joshua Glazov : Design Build Contracts, Construction Bankruptcy

Back in Mechanics Lien Priority: Contractor vs. Lender - Part 1 we talked about the basics of priority and why it’s important.  At the end I promised to fill you in on the backstory of the Cypress Creek decision.  Here it is.

Backstory of LaSalle Bank, N.A. v. Cypress Creek 1, LP

It started when a developer (we'll refer to them as the "Owner") borrowed money from LaSalle Bank (the "Lender") to design and build a senior housing project outside of Chicago. To secure payment of principal, interest, and fees on the loan, the Owner gave to the lender, and the lender recorded, a mortgage against the project.

Later, the Owner entered into contracts with Eagle Concrete and the Edon Construction Company (together, the "Perfected Contractors").  Under these contracts, Eagle provided concrete and Edon provided carpentry.  Each then provided work on the project under their respective contracts.

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FDIC Chairwoman Sheila Bair appeared for an interview on CNBC today.  Press play below to tune-in to her remarks on: 

• Increased lending activity
   
• The financial regulatory reform bill pending in Congress
   
• The pace of bank failures and when they'll peak
   
• Resumption of scuitizations

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