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Category Archives: Construction Finance and Insolvency

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Construction Mortgage Foreclosure Does Not Wipe Out Reciprocal Easement Agreement Rights: Bank of America v. Cannonball

Posted in Construction Finance and Insolvency, Illinois, Mechanics Liens, States, Uncategorized

A foreclosing construction lender recently tried to wipe out liens securing debt under a shopping center cross-use and easement agreement. The Illinois Appellate Court denied that attempt. The decision: Bank of America v. Cannonball LLC. Backstory It starts with a new shopping center with a Home Depot, a Kohl’s, and a Target. The local village… Continue Reading

FDIC vs. Construction Lenders Jury Verdict: IndyMac Bankers Liable for $169 Million

Posted in California, Construction Finance and Insolvency, FDIC & Bank Failures, States

Jurors awarded this $169M verdict (PDF) against three former IndyMac Bank executives for originating dubious construction and development loans. It happened last Friday in Los Angeles at the US District Court for the Central District of California. $169M Verdict Against Former Indyac Bank Executives In their original complaint (PDF), the FDIC alleged: That the former… Continue Reading

Krahl Construction Closes: FBI Raid and Assignment For The Benefit of Creditors

Posted in Construction Finance and Insolvency, Illinois, States

Serving search warrants earlier this month in a raid on Krahl Construction’s headquarters, the FBI seized the Chicago company’s computers and files. Several days later, company executives announced the company would shut its doors. Then today Krahl set up a trust and assigned its assets into the trust for the benefit of its creditors. Howard… Continue Reading