Attorney Opinion Letter
What is an “Attorney Opinion Letter”, who needs it and when is it needed? We have been retained numerous times by residential and commercial borrowers to provide their lender with such an opinion letter. Essentially, a lender may require an opinion, from borrower’s counsel, relative to the following matters:
* Where the borrower is an entity, such as a corporation, limited partnership or limited liability company, is such entity validly formed in its state of organization (or possibly duly qualified as a foreign entity within Nevada)?
* Is there any pending litigation or liens of record involving the borrower or does borrower possibly have any unsatisfied judgments?
* Most importantly, are the loan documents that the borrower (and often a guarantor of borrower) will be executing (as well as the instruments securing the loan such as a Deed of Trust or Security Agreement and UCC-1 filing) enforceable within the State of Nevada? Restated, if the borrower fails to pay or meet its other loan obligations, will the lender have an adequate remedy to collect or otherwise compel performance? Often, there are specific Nevada laws which may make a certain type of action against a borrower unenforceable.
We have experience with conventional (purchase or refinance), residential (single or multi-family), private as well as CMBS (commercial mortgage-backed security) loans. Please contact us should you or your lender require a Nevada attorney opinion letter.