The Secrets Behind Why Banks Do What They Do in Bankruptcy Cases Central Florida Bankruptcy Law Association Linda B. Charity April 29, 2016, Orlando, Florida

Akerman | 2  Bank versus non-bank lenders  Type of charter (state versus national or credit union)  Headquarters location  Internal decision-making hierarchy  Bank response to impending or actual bankruptcy  Commercial loan vs. consumer loan Who, What and When?

Akerman | 3  Media reports  Public filings  Federal bank regulatory web sites  State web sites  Third parties (for example BankRate Monitor) Troubled Bank vs. Safe and Sound Bank

Akerman | 4  Quarterly financial reports  Suspicious Activity Reports (SARs) *  Currency Transaction Reports (CTRs) *  SEC filings for public companies  Examination responses *  Audits * * Not generally publically available Bank Reporting Requirements All Banks

Akerman | 5  Quarterly regulatory reports  Special problem loan reporting per order  Other special requirements (significant events) Bank Reporting Requirements Problem Institutions

Akerman | 6  Regular reserves  Special reserves  Troubled debt refinance  Non-accrual (90-days)  Call report requirements  Impact on capital and earnings Accounting Issues

Akerman | 7  Mediation  Short sale – Homestead versus non-homestead  Release of liability for loan balance  1099 liability  Deed in lieu of foreclosure  Foreclosure  Creative solution? Resolution Options

Akerman | 8  Patriot Act - Know Your Customer/Know Your Cash  BASEL and International Banking Standards Compliance Requirements

Akerman | 9  Talk with lender often and early  Research borrower  Research lender  Public records/FOIA requests  Bottom line – health of bank will determine willingness to negotiate Adding It All Up