James Cochran Published in First American Eagle 9 UCC Newsletter
“Enforcing a Mezzanine Loan by Public Foreclosure Sale”

James Cochran’s article, “Enforcing a Mezzanine Loan by Public Foreclosure Sale,” was published in the Fall 2008 issue of First American Eagle 9 UCC Newsletter. In his article, Jim outlines the principal steps that a foreclosing mezzanine lender generally should take to ensure that its public foreclosure sale satisfies all legal and contractual requirements. He notes that, “Because the collateral securing a mezzanine loan consists of pledged equity interests and other personal property, foreclosing on such collateral is governed not by applicable real property law but rather by the UCC and other areas of law (e.g., federal and state securities laws).” Jim adds that it is also affected by various contractual requirements, such as those contained in the intercreditor agreement between the mortgage lender and the mezzanine lender and those found in the organizational documents governing the mortgage borrower. He goes on to detail each phase of the sale starting with the preparatory period, moving to the notice period, the sale of the collateral, and then he concludes with the post sale period.