Did you know that Owner Bankruptcy Filings Do Not Discharge Association Assessments or Pre-Petition Liens?
During these challenging economic times, many owners are failing to pay assessments and may even threaten to file, or actually file for bankruptcy protection. Many associations mistakenly believe that unit assessments are fully discharged when an owner files for bankruptcy protection. Pursuant to Section 523 (a) (16) of the U.S. Bankruptcy Code (cited as 11 […]
Employment Law Alert: Business Owners Should Implement Social Distancing Policies and COVID-19 Liability Waivers
The Centers for Disease Control and Prevention (CDC) have recently issued Interim Guidance for Businesses and Employers Responding to Coronavirus Disease 2019 (“COVID-19”). The CDC guidelines allow businesses to plan, prepare and respond to COVID-19 as they re-open for business. In anticipation of the need for effective, proactive and protective employment policies, we have drafted […]
Legal Alert: Federal Reserve Launches Main Street Lending Program For Medium and Larger Business Organizations
Last Thursday, April 9, 2020, the Federal Reserve took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic. Prior to the promulgation of […]
State of Minnesota Offers COVID-19 Small Business Loan Programs
Due to the current COVID-19 pandemic and the Emergency Executive Orders issued by Governor Walz relating to the pandemic and requiring Minnesotans to “Stay at Home,” the State of Minnesota is offering two loan programs to small businesses negatively affected by the situation. A summary of each of these loan programs is outlined below: Small […]
CARES Act Passes: Paycheck Protection Program Provides Financial Relief To Small Businesses
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. CARES is an economic relief package promulgated in response to the COVID-19 pandemic. The CARES Act provides Federal economic stimulus to small businesses through the Paycheck Protection Program (the “PPP”), a loan program designed to help small businesses keep their […]
Disaster Relief Loan Programs Announced
The United States Small Business Administration (“SBA”) and the State of Minnesota are making disaster relief loans available. Here is the link to the SBA website: https://disasterloan.sba.gov/ela/ This is a direct loan from the SBA, and the application is online and the website above. These loans do not go through the bank, they are direct loans […]
Top 10 Do’s & Don’ts of Drafting Community Association Rules and Regulations
Writing Community Association rules and regulations can seem like a daunting task. Here is a list of 10 Do’s and Don’ts to help you when drafting your community association rules: Make the rules logical and reasonable. Make the rules illogical and unreasonable.
Commissions: When is an Agent Entitled to Payment?
Real estate brokers (and, in turn, brokers’ agents) are paid on a commission basis. Just as a shoe salesman’s income can be based off the number of shoes he sells, real estate brokers earn income based off the number of sales transactions in which they are involved. How does a broker establish a commission claim? […]
Community association directors beware! Practical and legal issues regarding director compensation
Corporate accounting scandals involving large public corporations periodically shock the nation. As a result of these scandals, citizens have questioned the roles of corporate board members, officers, and directors. While most of the concerns have focused on large national publicly-traded corporations, the reverberations go much further. They even extend to community associations here in Minnesota. […]
Judge Not Lest Ye Be Judged: Avoiding the pitfalls of an improperly drafted confession of judgment
If drafted and used properly, a confession of judgment (“COJ”) is a unique and powerful way to ensure that a debtor performs under a forbearance or settlement agreement. If drafted and used improperly, then a creditor could become embroiled in needless litigation. Furthermore, a properly drafted COJ increases the value of the creditor’s claim by […]