loan assignment practical law

PLC US Antitrust, PLC US Bankruptcy & Restructuring, PLC US Capital Markets & Corporate Governance, PLC US Commercial Transactions, PLC US Corporate and M&A, PLC US Corporate and Securities, PLC US Data Privacy & Cybersecurity, PLC US Employee Benefits and Executive Compensation, PLC US Federal Litigation, PLC US Finance, PLC US Glossary, PLC US Government Practice: Federal, PLC US Government Practice: State & Local, PLC US Health Care, PLC US Intellectual Property and Technology, PLC US Labor and Employment, PLC US Law Department, PLC US Legal Operations & Professional Development, PLC US Real Estate, PLC US Securities Litigation & Enforcement, PLC US Tax, PLC US Trusts & Estates

Assignment of loan

• Unlimited access to our online legal know-how services during the trial period.
• Training and support.

Assigning Loan Documents: Practical Reminders

The recent Supreme Court of Delaware case  J.M. Shrewsbury v. The Bank of New York Mellon ,   CA No. N15L-03-108 (Del. 2017), provides a reminder of the importance of clearly documenting the assignment of loan documents. The Court’s holding requires that prior to the assignee of a mortgage loan filing suit on the note or mortgage, the assignee must have received both an allonge/assignment of the note and an assignment of the mortgage. The case is a reminder of the importance of maintaining a precise chain of title when assigning loan documents. The facts of the case as described below demonstrate the need to make sure that you “don’t leave the note behind.”

In 2007, J.M. Shrewsbury and Kathy Shrewsbury signed a promissory note in favor of Countrywide Home Loans, Inc. Concurrently, the Shrewburys were granted a mortgage to secure their obligations under the note, which mortgage encumbered real property in Delaware. In 2011, the mortgage was assigned to The Bank of New York Mellon (Bank). In 2013, the Shrewsburys requested and received a copy of the original note, which contained no indication that the note had been assigned. Neither party disputed the fact that the Shrewsburys stopped making mortgage payments in 2010.

The Bank commenced a mortgage foreclosure action in 2015 in the Superior Court of the State of Delaware,  Bank of N.Y. Mellon v. Shrewsbury , C.A. No. N15L-03-108 CLS (Del. Super. Ct. Feb. 17, 2016). In holding in favor of the Bank, the Superior Court found that the Bank need only show that it had a valid assignment of the mortgage to enforce its rights. The Shrewsburys appealed the decision to the Court.

In reversing and remanding the decision of the Superior Court, the Court followed its reasoning in Iowa-Wisconsin Bridge Co. v. Phoenix Finance Corporation, Iowa-Wisconsin Bridge Co. v. Phoenix Finance Corporation , 25 A.2d 383, 389 (Del. 1942), stating that a debt is an essential requisite to a mortgage. While persuaded by wide-ranging case law and other respected authorities, the Court’s decision relied most heavily on the United States Supreme Court case  Carpenter v. Longan,  83 U.S. 271 (1872), holding that the “note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity.”

Practical Reminders

While this case involved a residential transaction, important considerations can be applied in commercial mortgage transactions whether in connection with construction, bridge or permanent mortgage financing, a loan sale, a transfer of a loan to an affiliate of the original lender, or other assignment of the loan.

Practical reminders include:

• Make sure that the chain of title is precise when assigning the mortgage, the note and other collateral documents such as assignments of leases and rents, guarantees and UCC’s. Don’t leave the note “behind.”
• Assign and endorse the note by allonge so that the chain of title is complete. Firmly affix the allonge(s) to the underlying note.
• Keep good records of all documentation, including recorded ( i.e. the mortgage an assignment of mortgage) and unrecorded documents. Retain originals in a safe place (such as under the control of a custodian or servicer or in a vault) and copies of all loan documents including assignment documents.
• When the loan is assigned, always deliver the original note along with the original allonge.

Members of our Real Estate and Finance Groups regularly handle commercial real estate financing and sales transactions throughout the country. If you have questions or would like further information, please contact Tim Davis ( davist@whiteandwilliams.com ; 215.864.6829) or Pat Haggerty ( haggertyp@whiteandwilliams.com ; 215.864.6811).

PRACTICE AREAS

• Real Estate

KEY ATTORNEYS

• Cherry Hill
• Center Valley
• Philadelphia

By using this site, you agree to our updated Privacy Policy and our Terms of Use .

Assignment and Assumption: Multiple Assignments of Loans

Practical law canada standard document 5-615-7006  (approx. 13 pages), get full access to this document with practical law.

Try free and see for yourself how Practical Law resources can enhance productivity, increase efficiency, and improve response times.

About Practical Law

This document is from Thomson Reuters Practical Law, the legal know-how that goes beyond primary law and traditional legal research to give lawyers a better starting point. We provide standard documents, checklists, legal updates, how-to guides, and more.

• Increase efficiency
• Enhance productivity
• Improve response time
• Syndicated Loans

• Practical Law

Legal assignment

Practical law uk glossary 9-107-6754  (approx. 3 pages).

• Only the benefit of an agreement may be assigned.
• The assignment must be absolute.
• The rights to be assigned must be wholly ascertainable and must not relate to part only of a debt.
• The assignment must be in writing and signed under hand by the assignor.
• Notice of the assignment must be received by the other party or parties for the assignment to take effect.
• General Contract and Boilerplate
• Security and Quasi Security

Assignment of Leases and Rents (Pro-Lender) | Practical Law

Assignment of Leases and Rents (Pro-Lender)

Practical law standard document 9-555-4236  (approx. 31 pages).

See why the U of I College of Law is an excellent choice for your academic and professional success. See our viewbook

• Admitted Students
• Application Status
• Tuition & Costs

Emphasis Areas

• Business Law
• Environmental Law
• LSAT Prep Courses
• Student Accounts

Academic Administration

Important dates, class schedules, registration, honor code, and other general information for students. More Information

• Academic Calendar
• Room Calendars

Get Involved

• Student Organizations
• Pro Bono Program
• Externships
• Student Handbook
• Academic Success
• Law IT Services

Faculty-Staff Handbook

The Faculty-Staff Handbook provides an online reference for University of Idaho policies. View the FSH

Common Tools

• Human Resources
• Recreation and Wellbeing
• Administrative Procedures Manual (APM)
• Dates & Deadlines

You Can Inspire The Future

Support our students and programs at the College of Law. Inspire the future

Stay Connected

• Meet our Alumni
• Alumni Awards
• Law Advisory Council
• U of I Alumni Assoc.
• Law Library Service
• Find a Vandal
• VandalStore
• Liberty Mutual Benefits

College of Law

Email: [email protected]

Web: College of Law

Physical Address: Menard 101 711 S. Rayburn Drive

Mailing Address: College of Law University of Idaho 875 Perimeter Drive MS 2321 Moscow, ID 83844-2321 Main Office: 208-885-2255 Admissions: 208-885-2300 Legal Clinic: 208-885-6541 Office of the Dean: 208-364-4620

Fax: 208-885-5709

Physical Address: 501 W Front St, Boise, ID 83702

Mailing Address: 501 W Front St, Boise, ID 83702

Phone: 208-885-2255

Fax: 208-334-2176

Moscow Location

Moscow, with its tree-lined sidewalks and quiet places to study, provides several unique learning experiences for the ambitious law student:

Academic Specialties

Located on the University of Idaho campus, our Moscow location offers opportunities for interdisciplinary study.

• Business Law and Entrepreneurship
• Intellectual Property and Technology Law Track
• Natural Resources and Environmental Law
• Native American Law

Concurrent Degrees

• J.D./M.ACCT. (Master of Accountancy)
• J.D./M.S. in Environmental Science
• J.D./M.S./Ph.D. in Water Resources (Law, Management and Policy)
• J.D./P.S.M. (Professional Science Masters) in Natural Resources & Environmental Science

Clinics offer valuable practical experience that gives students a head start in their legal career. The following are available at the Moscow location: Community Law Clinic  and  Immigration Litigation & Appellate Clinic .

Trial Advocacy Program

The Trial Advocacy Program provides an opportunity for third-year law students to learn practical skills in courtroom advocacy from experienced faculty and accomplished judges and practitioners.

Professional Opportunities

In Moscow, students will interact with judges on the U.S. Ninth Circuit Court of Appeals and Idaho Supreme Court, as well as university counsel, local attorneys, visiting speakers and more. The Native American Law conference also provides educational opportunities on the law by and between Tribal, Federal and State governments.

Moscow Community

College Town

Moscow, Idaho, has a population of approximately 24,000 and offers a safe, family-oriented environment. The University of Idaho campus lies among the scenic Palouse region, defined by its vista of blue skies and rolling hills. Many people who come to visit end up making Moscow their home.

Vibrant Community

Moscow’s vibrant downtown area is a short walk from campus and offers several dining options, and a local farmer’s market. Moscow supports a rich art and cultural scene, including the annual Lionel Hampton Jazz Festival, a Renaissance Fair, local theater, art galleries, and many family-friendly events. Moscow, Idaho, is also a relatively short drive from other fun cities, including Boise; Portland, Ore.; Spokane, Wash.; Seattle, Wash.; and Missoula, Montana.

The Great Outdoors

The University of Idaho in Moscow offers much to the outdoor enthusiast. Mountains, lakes and rivers feature miles of trails for biking and hiking, skiing and snowboarding, rock climbing, white-water rafting, fishing and camping. In addition, the university has an award-winning Outdoor Recreation Program to help students enjoy these activities with convenient equipment rentals and organized group trips. Make friends and great memories.

Network Opportunities

While you attend the U of I College of Law, you will interact with judges, U.S. Ninth Circuit Court of Appeals, Idaho Supreme Court, university counsel, law firms, intellectual property (IP) and patent lawyers, and many others. Students have many opportunities to build a network right here in the Moscow community.

Find information about degrees, emphasis areas, academic plans, clinics, the pro bono program, externships and more.

Find all your academic information

Family Friendly Moscow

Named a Best Place to Raise a Family, the Moscow location enjoys a family study room, changing tables, assigned study carrels, a lactation room, and community resources that promote a healthy balance between law school and life.