Legal Opinion for Two Million Dollar Loan Disbursed in 1 Week

Legal Opinion for Two Million Dollar Loan Disbursed in 1 Week

Applicant: DNO Insurance
Case type: Issuance of legal opinions on commercial real estate loans
Case duration: one week

BACKGROUND
Title insurance counsel, bank, California company, outside counsel, four-way involvement, coordination and communication not easy

• Poor communication at the drafting stage and lack of clarity between the parties as to the scope of the requirements of the legal opinion

• Time-critical and heavy task to assess the corporate reputation and ownership rights of two different companies

Mr. Ruby served as senior commercial counsel to DNO Insurance, a large title insurance company in Virginia. One of his clients, LaTech, LLC of California, wanted to borrow $2 million from a bank in Florida to refinance a commercial property in Louisiana. However, the bank required a legal opinion from outside counsel to verify LaTech, LLC’s corporate creditworthiness and ownership authority to lend the money. Mr. Ruby needed a California law firm that could provide his client with the relevant documentation on short notice.

Pressed for time, Mr. Ruby emailed numerous California law firms with inquiries. Upon receipt of the email, we immediately provided Mr. Ruby with a quote and a list of sample documents. Within a few days, Tsang & Associates was selected out of four California firms that had submitted quotes – Mr. Ruby responded that his client, LaTech, LLC, had selected our firm to provide the legal opinion requested by the bank.

KEYS TO SUCCESS
Four parties were involved in the preparation of the legal opinion: DNO Insurance Company, title insurance counsel; LaTech, LLC, a California corporation; Florida State Bank, which requested the legal opinion; and us, Tsang & Associates, outside counsel. (Tsang & Associates), outside legal counsel.

We were well aware that four-way communication was critical and that miscommunication could have caused significant delays and aggravation in an already imminent case. As expected, there was a miscommunication between DNO Insurance and LaTech, LLC regarding the scope of the legal opinion requested by the bank, resulting in us receiving the opposite requirements and information, causing confusion and delays in the initial drafting stage. We rushed to clarify the scope with all parties, coordinated all parties in step, and clarified the misunderstandings before providing an updated list of documents and collecting the correct documents.

It is worth noting that a single company owns LaTech LLC, so we must evaluate the corporate reputation and ownership authority of the two different companies. In other words, the legal opinion required more than twice as many documents to be sorted through and reviewed as a regular company, but it was the only way to produce a legal opinion that met the bank’s scope and requirements.
Ultimately, we were able to gain the trust of LaTech, LLC and its holders to prepare the Borrower and Guarantor Statements, the basis for obtaining a legal opinion on the loan.

OUTCOME
Within a week, we cleared the misunderstanding between DNO Insurance, LaTech, LLC and the bank; collected the appropriate documents from DNO Insurance and LaTech, LLC; issued a legal opinion for DNO Insurance; and issued a statement to the bank in this regard for LaTech, LLC.

Finally, our firm’s fastidious but meticulous work resulted in a “win-win” situation – a four-way split – when LaTech, LLC successfully obtained a $2 million loan from Florida State Bank with our legal opinion to refinance its commercial property in Louisiana. to refinance its commercial property in Louisiana. As a token of our appreciation, DNO Insurance Company has committed to assigning all future California cases to our firm, Tsang & Associates.

U.S. law is full of laws, and in business activities, it is necessary to contact business laws every moment, especially in interstate and multinational companies face more problems instead of a temporary hold on the Buddha’s feet, it is better to have a professional team of lawyers familiar with business law, as permanent business legal counsel to protect the company.

 

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