Finance regulations today complicate even the simplest of transactions. Whether you need to secure financing for a real estate or general commercial project or ensure that your lending practices are up to legal standards, the team of financial attorneys at Tiffany & Bosco can help.
One of the most popular commercial real estate ventures in the Southwest today is multi-housing projects. The Tiffany & Bosco law firm has become known throughout the region for providing expert assistance with these developments.
Tiffany & Bosco financial attorneys represent both lenders and borrowers in negotiating and documenting financial transactions. The loans may range from simple structures to ones that involve several sources of debt and equity funds. We are involved because the regulations are complex.
The United States Code Title 12 regulates banking and finance matters. USC Title 15 regulates transactions crossing state lines. Further complicating matters for both lenders and borrowers is the fact that Arizona, Nevada and California integrate their own laws via multiple sections of their codes.
A quick look at the Arizona Department of Financial Institutions reveals that the state legislature has added finance laws to Arizona Revised Statutes Title 6, 32 and 44. These regulations cover everything from how the financial institution is organized to how it loans money.
For instance, among the hundreds of specific regulations for financing, Title 6, Chapter 9 specifies in precise terms how mortgages are to be structured. If a client is considering a property with an existing mortgage, these rules will play a role in how the financing is to proceed. One of the most common ways some have gotten into legal trouble is through violations of ARS 6:947(a).
ARS 6:947(a) specifies that no contract may be signed if there are blank spaces. Before the financial troubles of a decade ago, lenders often allowed or induced buyers to leave certain parts of a finance contract blank to be completed later. Although not legal even then, the practice seldom resulted in legal penalties. However, many today have found themselves in legal trouble as a result and penalties range from fines to imprisonment.
However, at times there are valid reasons to leave some information unfilled on an agreement. How does one comply with the law?
Simple. The same section which prohibits leaving blank spaces on a finance agreement states that “the party may specifically authorize the licensee or the escrow agent handling the transaction, in writing, to complete blank spaces in certain documents.”
This example is here to demonstrate that sometimes even the simplest of matters when completing finance paperwork can result in legal woes for those involved in the transaction. In fact, failing to adhere to this simple clause in the finance law can result in criminal charges to the perpetrator, even if the oversight was not intentional.
The bottom line to any transaction involving real estate or commercial properties is that it must be legally structured; the more complex the transaction, the more important it is to have the documents reviewed by your financial attorney. Failure to adhere to any law, large or small, can cause the project to fail. This is where the Tiffany & Bosco financial attorneys help protect your investment.
We have also developed a niche in the area of multi-housing loans to for-profit and nonprofit entities that are insured by the U.S. Department of Housing and Urban Development (HUD). To date, we have closed HUD insured loans for multi-housing projects on behalf of borrowers for an aggregate loan amount in excess of $3.1 billion.
We help both borrowers and lenders comply with the growing mass of regulations so that their projects are properly structured from the start. This ensures full compliance with the law and avoids costly legal battles later. Whether you are a lender or a buyer, contact the Tiffany & Bosco law firm today to review your financing. Contact us today for a confidential consultation.