Generally speaking, secured lending is defined as a loan or extension of credit in which the borrower pledges an asset as collateral for the loan. A secured loan or transaction generally involves a two document system: an acknowledgment of the…
Confusion often exists as to the differences between the multiple types of guaranty agreements and suretyship agreements in North Carolina. Although subtle differences can dictate when the liability of a party may be triggered, they do share some initial similarities. …
In the past, many whistleblower claims arose out of simple revenge. A fired or aggrieved employee seeking retribution against his employer for a termination or demotion. Today, however, people are reporting complaints at an ever-increasing rate under a variety of…
Effective July 1, 2013, identification of an individual who is party to a UCC-1 Financing Statement changed. Gone are the days of listing the debtor as “Joe Smith.” Now, you must use the name as it is indicated on the…
Consider the following scenario: Seller claims $100.00 is due for goods provided. Buyer claims that only $75.00 is owed. Buyer then mails a check to Seller for $80.00, marked “paid in full”. What are the consequences if the Seller deposits…
As part of the continuing series of articles identifying important construction contract clauses, perhaps the most impactful clause in a contract can be the standard termination for convenience clause. Imagine this scenario: your firm expended time and material in bidding…
My first job out of law school was situated two blocks from the White House, working in a cubicle for the Internal Revenue Service. I worked as a tax lawyer in the Exempt Organizations Group and reviewed organizations for a…
Have you ever heard of the Servicemembers Civil Relief Act (SCRA)? If not, you will as it appears it has reared its head in the court system, again. The basic premise of the SCRA is to prevent those in the…
Oftentimes when there are claims involving quality of construction, non-payment of subcontractors or suppliers, or payments due to a general contractor for money due from an owner, issues of licensure suddenly appear. Whether or not a general contractor and certain…
An oft disputed, and occasionally misunderstood, provision in construction contracts is that of Liquidated Damages (commonly referred to as “LDs”). Generally speaking, Liquidated Damages refer to a sum of money which a party to a contract agrees to pay to…
“North Carolina is a debtor-friendly state.” A prominent North Carolina lawyer shared that sentiment with his newly-minted lawyer-daughter over and over again. She initially failed to appreciate the import of those words. After 20+ years of practice, the truth of…
Some businesses must pay income taxes. Some need not. Some businesses must file annual federal tax returns. Some need not. During tax season, these issues obviously take on added importance. We have recently fielded dozens of related questions and formed…
A Wake County Superior Court Judge issued a ruling this week in a highly publicized land development / zoning case. The ruling ended another chapter in this highly controversial case, and further appeals are very possible. The case centers around whether a…
The North Carolina Land Title Association (NCLTA) played a large role in the 2012 updates to North Carolina’s construction lien statutes, and the NCLTA was again active in shaping 2017 revisions. The 2012 updates benefited title insurance companies by creating…
Bankruptcy is designed to give debtors a “fresh start.” Accordingly, a bankruptcy discharge releases a debtor from liability for certain debts which the bankrupt party previously owed. A debt discharged in bankruptcy is no longer owed. Bankruptcy is often cruel…