Are “cross-collateral clauses” enforceable?
It’s one of the most frequently asked questions at collections and bankruptcy seminars, and it’s the subject of wildly conflicting opinions among lawyers and even courts. Many courts “disfavor” them, but consumer financial institutions still use cross-collateral clauses to successfully collect hundreds of thousands of dollars each year!
What are cross-collateral clauses anyway? How are they used in real life situations? What does the law say about them? How can your financial institution make the most of them?
During this program, attorney Eric North will talk with participants regarding:
- What courts have to say about cross-collateral clauses, why many courts don’t like them, and what you can do to address their concerns.
- The laws that govern the use of cross-collateral clauses.
- How improper or careless use of a cross-collateral clause can get your financial institution in trouble.
- How to tell a good cross-collateral clause from a bad cross-collateral clause (and how to make yours a good one).
- Mistakes your financial institution can make that may cause you to lose the benefit of a perfectly good cross-collateral clause.
- Why the full support of management is absolutely essential for a successful cross-collateral clause program.
- How to properly and effectively use your financial institution’s cross-collateral clauses!
For more information, call NorthLegal at 623.537.7150.
NorthLegal Training and Publications | 5115 N. Dysart Rd, No. 202-500, Litchfield Park, AZ 85340
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