Construction Lending


Live Broadcast on October 26, 2017

This program will provide guidance for both borrowers and lenders who in negotiate and document construction loans, including covering related issues such as completion guaranties, title insurance and periodic disbursements, lien waivers, retainage and project completion.

Key topics to be discussed:

•   Pre-Financing Issues
•   General Financing Issues
•   Construction Financing Issues

Date / Time: October 26, 2017

•  10:00 am – 12:00 pm Eastern
•  9:00 am – 11:00 am Central
•  8:00 am – 10:00 am Mountain
•  7:00 am – 9:00 am Pacific

Choose a format:

•  Live Video Broadcast/Re-Broadcast: Watch Program “live” in real-time, must sign-in and watch program on date and time set above. May ask questions during presentation via chat box. Qualifies for “live” CLE credit.
•  On-Demand Video: Access CLE 24/7 via on-demand library and watch program anytime. Qualifies for self-study CLE credit. On-demand versions are made available 7 business days after the original recording date and are view-able for up to one year.


Bruce G. Rosen, Esq. is the founding member of Real Estate Counselors, PLLC.

Mr. Rosen focuses on commercial real estate transactions, including office and retail leasing, acquisitions and sales of commercial properties, secured lending and joint ventures. He also has experience in creditors’ rights and commercial bankruptcy matters.

Before founding Real Estate Counselors, Mr. Rosen was an Attorney with the law firm of Akin, Gump, Strauss, Hauer & Feld.

Mr. Rosen is the author of “When Office Landlords Lease to Retail Tenants” published in the Practical Real Estate Lawyer.

Steven A. Loewy, Esq.

For over twenty years, Steven A. Loewy has represented lenders, developers and other businesses in Maryland, Virginia, and metropolitan Washington, D.C. negotiating, structuring and closing major commercial real estate transactions. Representative transactions include advising a lender in connection with a complex $35 million commercial construction loan, and advising a borrower in a $60 million bond financing transaction.

Among other publications, he is the author of “Indoor Pollution in Commercial Buildings: Risks and Liabilities” Commercial Realtor, Spring, 1994

CLE Accreditation:
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CLE 2.00 – AK
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CLE 2.00 – ID
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CLE 2.00 – ME
CLE 2.00 – MN
CLE 2.40 – MO

CLE 2.00 – MP
CLE 2.00 – MS
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CLE 2.00 – NH
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CLE 2.40 – NY
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CLE 2.00 – TX

CLE 2.00 – UT
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CLE 2.40 – WV
CLE 2.00 – WY

Accreditation Policy
myLawCLE will seek credit where attending attorneys are primarily licensed for all of its live webinars and live teleconferences, except in states which allow for reciprocity (see reciprocity section below). Credit for CLE in a self-study format is sought for in most states; however, some states do not allow for CLE credit to be earned in a self-study format (see the self-study section below). Many states typically decide whether a program qualifies for MCLE credit in their jurisdiction 4-8 weeks after the program application is submitted. For many live events, credit approval is not received prior to the program. Credit hours granted are subject to approval from each state.

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On-demand CLE
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Section I. Pre-Financing Issues
a) What’s covered in the Commitment Letter
b) Stages of Construction Financing

Section II. General Financing Issues
a) Loan Agreement Issues
        i. Financial Covenants
        ii. Financial Reporting
        iii. Permitted Leasing Activity
        iv. Transfers
        v. Insurance & Use of Proceeds
        vi. Recourse Matters
        vii. Cash Management/Lockbox
        viii. Subordination & Estoppels
        ix. Events of Default
        x. Final Advance
b) Other Loan Documents
        i. Promissory Note
                • Confession of Judgment
        ii. Mortgage
        iii. Assignment of Rents/Leases
        iv. Assignment of Contracts
        v. Environmental Indemnity
        vi. Guaranty
c) Legal Opinion
        i. Due Execution and Delivery
        ii. Enforceability
        iii. Perfection vs Priority
        iv. Adequate Realization

Section III. Construction Financing Issues
a) Lending Considerations
        i. Loan-to-Cost Ratio
        ii. Takeout Commitment
b) Specific Documents
        i. Construction Loan Agreement
        ii. Completion Guaranty
        iii. Assignment of Plans, Permits and Approvals
        iv. O & M Agreements
        v. Review of Construction Agreement
c) Bonding Requirements
d) Interest Reserves
e) Draw Requests
        i. Limitations on Drawn amounts
        ii. Stored Materials
        iii. Retainage
        iv. Lien Waivers
f) Change Orders
g) Holdbacks
h) Final Draw Issues
i) Takeout Financing
j) Title Insurance Issues
k) Closing Requirements
l) Borrower Issues
        i. Minimizing Retainage
        ii. Advances for Soft Costs
        iii. Consistency with Construction Document