Pink Floyd Songs and Creditors Rights – Money
Waivers and Remedies
“Run Like Hell”
Debtors and guarantors typically “Run Like Hell” from their responsibilities when a deal fails, employing a scattershot strategy for all possible defenses. Always include waivers of defenses, such as presentment, notice, impairment of collateral, and waivers of all defenses to the Note or the obligations, in the loan documentation. Additionally, it’s crucial to include provisions for the recovery of attorneys’ fees paid by the creditor for any reason, including the defense of the note or the defense of any claims made against the creditor or debtor that could affect the obligation, for costs of collection, including an award for post-judgment fees paid by or to be paid by the creditor in recovering on any award or judgment, and for any actions taken to protect the creditor’s interest or position in bankruptcy. By casting a wide net, the creditor has the chance to be reimbursed for any out-of-pocket costs incurred when outside counsel is required. Another frequently overlooked clause should state that all pledged collateral and the proceeds thereof are held in trust by the debtor for the benefit of the creditor. There are several ways to do this, but it should be done since it gives the creditor an effective tool in its toolbox if the debtor fails.
We would like to acknowledge Ron Steen at Thompson Burton in Tennessee, as the original author of this tongue-in-cheek look at Pink Floyd and the Debt Collection Legal Industry