Accounts – Ohallo Ranco http://ohalloranco.com/ Tue, 30 Nov 2021 13:11:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ohalloranco.com/wp-content/uploads/2021/05/default1.png Accounts – Ohallo Ranco http://ohalloranco.com/ 32 32 Profitable Tiny House Maker Repays $ 6.5 Million PPP Loan https://ohalloranco.com/profitable-tiny-house-maker-repays-6-5-million-ppp-loan/ Tue, 09 Mar 2021 10:57:47 +0000 https://ohalloranco.com/profitable-tiny-house-maker-repays-6-5-million-ppp-loan/ WOODLAND HILLS, CA – JANUARY 23: A resident walks past a tiny house by artist Alex Gano on … [+] Thursday January 23, 2020 in Woodland Hills. Julien, 28, who has been homeless for three years and lives along the Ventura Boulevard corridor from Studio City to Woodland Hills, says he feels less homeless and […]]]>

Updated 04/27/2020 10:30 AM: Legacy Housing has decided to repay its loan after this article was originally posted.

Global response to COVID-19 is throwing people out of work – more than 26 million people had filed for unemployment as of April 23, according to the New York Times.

The $ 349 billion Paycheck Protection Program (PPP) was supposed to go to small businesses to pay their employees for just over two months – and loans will be canceled if at least 75% of the loan – which carries a fixed interest rate of 1% – used to cover salary costs, depending on the Treasury Department.

Not all PPP beneficiaries were small businesses. 103 publicly traded companies have received more than $ 380 million in PPP loans, according to the the Wall Street newspaper.

And among the 40 public enterprises twho received the largest PPP loans, reported by Market surveillance, is Legacy Housing Corporation which achieved a whopping 17% net profit margin – $ 28.8 million in net income to $ 169 million in revenue – during the last twelve months.

Not only is it highly profitable, it employs far more than the 500 people the Treasury Department has designated as the limit for PPP loans. According to its latest 10K, Legacy had around 800 people on its payroll at the end of 2019.

Legacy’s PPP loan stood at $ 6.5 million at an interest rate of 1% per annum, according to an SEC filing. Until November 10, Legacy does not have to make any payments and the loan can be canceled as long as the company uses the proceeds “for salary costs, costs used to continue group health care benefits, mortgage payments, rent, utilities and interest on other debt obligations.

On April 25, two days after asking the company for feedback, Legacy Housing told me it had decided to return the funds.

According to a statement from Legacy President and CEO Kenny Shipley, “We sought P3 funds for very simple reasons – we wanted to make sure that our operations would continue to provide affordable housing, maintain our payroll and keep our employees … Before being approved by the SBA and receiving PPP funds, we had undertaken a series of layoffs, lowered the prices of our products and lowered wages throughout the company … However, at In light of recent SBA guidelines, we have made the decision to return the funds difficult.

(I have no financial interest in the securities mentioned in this article).

Legacy – whose stock is trading 44% below its high of $ 16.76 in December 2019 – saw revenue growth of 4.4% for 2019 while net profit rose 24%, according to a March 30 results press release.

Legacy is excited about its 2019 results. As Curtis D. Hodgson, Executive Chairman of the Board, “2019 was the best revenue year in Legacy history. We are especially happy to have ended the year, which is generally a slower part of our sales cycle, with a lot of momentum, increasing our fourth quarter revenue by around 24% compared to the same period in 2018 and our net profit of 147%. compared to the fourth quarter of 2018. “

COVID-19 is hurting Legacy’s business and the company is responding with price discounts and some cost reduction. We are “offering discounts for the sale of aging inventory on lots of dealer and company owned stores … and new units, and reducing down payment requirements for some community manufactured home operators,” he said. -he declares.

Legacy has “suspended most overtime and changed rates of pay for non-production workers” and “slightly reduced” production labor in “anticipation of reduced demand in the immediate future,” Hodgson said .

Still, Legacy – whose homes range from 390 to 2,667 square feet and cost between $ 22,000 and $ 140,000 – expects things to turn around. “Our order book is still strong and we are well positioned once the situation begins to normalize,” he concluded.

Along with its PPP loan, Legacy was also able to secure a strong increase in its bank line. On April 1, Legacy Housing increased its line of credit 56 percent to $ 70 million, according to SeekingAlpha, at a interest rate less than one-month LIBOR plus 2%.

Legacy is happy with the deal. CFO Cornelius “Cork” Van Den Handel said: “The new agreement will provide the company with operational liquidity at extremely competitive rates and allow continued business growth and financial flexibility. “

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I am 24 years old and I am dating a 64 year old man. He wanted to get married, but I found out that he had never been divorced. Have I been ripped off? https://ohalloranco.com/i-am-24-years-old-and-i-am-dating-a-64-year-old-man-he-wanted-to-get-married-but-i-found-out-that-he-had-never-been-divorced-have-i-been-ripped-off/ Tue, 09 Mar 2021 10:57:47 +0000 https://ohalloranco.com/i-am-24-years-old-and-i-am-dating-a-64-year-old-man-he-wanted-to-get-married-but-i-found-out-that-he-had-never-been-divorced-have-i-been-ripped-off/ I am 24 years old and have been in a relationship for five years with a 64 year old man. He’s financially secure, he’s taking us on vacation, and he wanted to get married when we first met. He was in the US Army and has been married for over 30 years with two grown […]]]>

I am 24 years old and have been in a relationship for five years with a 64 year old man. He’s financially secure, he’s taking us on vacation, and he wanted to get married when we first met. He was in the US Army and has been married for over 30 years with two grown children.

He and I took a trip to a lake and we had an amazing time. I found out later that we were there so he could finalize his divorce. It never happened, and I was never informed. I didn’t ask any questions either. I trusted him. I really don’t know how to move our relationship forward. I confronted him with not being divorced, and his excuse was that he didn’t have enough time.

The Argentist: My mother gave my aunt $ 250,000 to buy a house. My aunt has a mild intellectual disability and I’m afraid someone will take advantage of her

I often feel guilty for being in this situation – the pain I feel for being in love with someone that I may never be for myself. When the relationship started he wanted to get married, but now things have changed and it has come as a shock to me. I didn’t want to get married at first because I wasn’t sure that was what I wanted from this relationship.

But now marriage is no longer an option and, it seems, a preference for him. The day will never come for us to get married. It breaks my heart. Have I been ripped off? He’s everything I’ve ever wanted in a person: he’s smart, funny, smart, caring, and good looking.

Sorry

The Argentist:“I feel very bitter”: my late father gave my sister a power of attorney. She kept $ 100,000 of her savings. Should I take legal action?

Dear broken heart,

Add unavailable to this list.

People sometimes say what they think the other person wants to hear, especially if they want something from that person: company, love, sex. The same goes for businesses: I know what problem you want to solve and I can provide the solution for you. Of course, the courts are full of claims that a business partner or an entrepreneur or a former romantic partner was not who they claimed to be.

Divorce is a huge emotional and financial upheaval. He can be happy with his life as it is. He doesn’t have to pay an ex-wife alimony, split his property 50/50, pay outrageous attorney fees, get married and start over at 65, assuming that’s the age he will be when he finally has a single man. I guess the last thing he wants to do is remarry so soon after his divorce – if he ever decides to divorce, what I’m saying is unlikely. Plus, you’re dating now, and he knows you love him, and you’ve both invested time and created memories.

The world and the dating sites are full of married men; men do not mention their marital status or the fact that they are still living with their ex-partner until days or weeks after the start of the relationship. At that point, you will like the person and, I guess, trust them. As such, you are more likely to buy what they are selling and ignore the lie of omission. That’s why they call it a trust trick.

The Argentist: My wife and I live with my dying mother. My brothers and I will inherit his house. Should I ask him to sell it and move in with me?

Charlie Munger, vice president of Berkshire Hathaway, spoke about the psychology of human error in judgment in a famous 1995 lecture to a class at Harvard University. Munger has never taken a course in psychology or economics, but he gives a fascinating point-by-point look at all the ways we lie to each other and To allow others to lie to us. Here is a very brief rundown of the top five:

No. 1. Psychological denial. We believe what we want to be true. It is considered to be one of the most basic defense mechanisms we carry into adulthood, as it has its roots in early childhood development, but it often influences our decisions related to finances and romance.

N ° 2. Incentive cause bias. The reward outweighs the risk and / or doubts you may have. “Take sales presentations from commercial real estate business brokers,” Munger said. “I’ve never seen one that I thought was even at the distance of objective truth.”

The Argentist: My parents died of COVID-19. They died without a will – but they wrote in emails that they wanted me to inherit their house

N ° 3. Tendency to commitment. It is a “superpower in the psychological tendency to error,” said Munger. You’ve been waiting for that diamond engagement ring or that bus or the return of that stock you bought in 1999, so it’s more likely to happen, right? Wrong.

No. 4. Self-confirmation bias. We are looking for evidence that supports our wishes and / or beliefs. Nowhere is this more powerful, perhaps, than social media and the “echo chambers” that exist on Facebook and Twitter, as social media companies tailor algorithms to our tastes and preferences. dislikes.

N ° 5. Agency fees. It comes into play when we over-trust paid financial advisers, doctors, lawyers, religious leaders, politicians, business leaders, or in your case, a romantic partner with more life experience than you. you.

“The cash register was a great moral instrument,” said Munger. This helps employers know that their staff are not neglecting them. Cash registers produce receipts. You too must have at least one receipt: a divorce decree. And, let’s not forget, all of these judgment errors can be true for your boyfriend as well. He probably couldn’t believe his luck, and he might have lied to himself as well.

You can email The Moneyist with any financial and ethical questions related to the coronavirus at qfottrell@marketwatch.com

Hello, MarketWatchers. To verifythe private Facebook Facebook Moneyist,
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‘Writers & Lovers’, by Lily King: NPR https://ohalloranco.com/writers-lovers-by-lily-king-npr/ Tue, 09 Mar 2021 10:57:46 +0000 https://ohalloranco.com/writers-lovers-by-lily-king-npr/ Writers and lovers through the king of lilies Lily King’s new novel, her fifth, won’t transport you to an exotic location like her latest did, but oh my god, it’s a good read. After Euphoria (2014), a richly documented and imagined tragic love triangle inspired by the life of anthropologist Margaret Mead, King returns to […]]]>

Lily King’s new novel, her fifth, won’t transport you to an exotic location like her latest did, but oh my god, it’s a good read. After Euphoria (2014), a richly documented and imagined tragic love triangle inspired by the life of anthropologist Margaret Mead, King returns to her comfort zone: a distressed young woman finding her way at the end of the 20th century in New England.

Set in 1997 – two years before the publication of King’s first novel, Time for Pleasure – Writers and Lovers is narrated by Casey Peabody, 31, who struggles to finish writing her debut novel under the crushing weight of college loan debt and grief over the recent and unexpected death of her mother. She’s a teary, anxious mess – but so sympathetic you might want to bake her cookies.

No one could accuse Casey of lack of discipline. When she does get to sleep, she gets up early to walk her owner’s dog so she can return to her office at 6:30 a.m. to write a few hours before cycling three miles to Cambridge, Massachusetts for the “insane distractions” from her demanding waitress job. By the time she cycles back to her wet, converted garden shed in Brookline, it’s past midnight.

When we meet Casey, she feels overwhelmed by a passionate affair with a poet she met at a prestigious writing residency she attended too soon after her mother died. Like many of King’s early heroines, Casey was unlucky in love, starting with a painfully flawed father and moving on to a series of “intermittently, here and then gone” boyfriends.

Muriel, one of her rare friends who has not given up on writing – and a shining example of female friendship – brings Casey to a book signing where she meets two lovers who come to represent her two roads in a yellow wood: Oscar, an older and famous author who has been raising his adorable (bordering on sick) sons solo since losing his young wife to cancer, and one of the students from Oscar’s workshop, a high school teacher with a chipped front tooth and a rusty car. The novel allows us to wonder in which direction Casey is going to turn.

There is nothing exotic or surprising new about this story, but Writers and lovers is striking proof that literature doesn’t have to be revolutionary to be absolutely convincing. In fact, King’s novel – about the choices and sacrifices it takes to hang on to a dream – would be a valuable addition to curriculum writing. Not only does Casey’s story show how hard it can be to believe in yourself, stay the course, and finish the damn book when all your friends get paychecks and promotions, get married and have babies – but also, the assurance that you don’t. you have to break the mold to write a good book.

Of course, writing as well as King helps. But you also need to develop tough skin. After Casey’s arrogant owner laughed at her, “You know … I just find it amazing that you think you have something to say,” Casey thinks, “I don’t write because I think I have something. to say. I write because if I don’t, everything is even worse. “

Among the elements that make Writers and lovers the small, perfectly calibrated details, the convincing conversations and the funny spirit are therefore winners. “Hopefully your next six years will be a little more exciting, sweetheart,” comments a postal worker when Casey says how long she’s been working on the stack of manuscripts she’s sending to potential agents. “Still there,” the same employee remarks when Casey returns to mail a revised copy. “Yeah.” “Well, I can’t shoot you for trying,” said the clerk.

The novel, filled with believable lows and well-deserved highs, launches with ironic punches at men who don’t listen (including several callous and blunt doctors, like the gynecologist whose exam makes Casey “feel like a car that is lifted for a tire change “), unlike some who to do listen – well enough to really hear.

Writers and lovers is a book about passion, desire, sorrow, determination and finding your way. It is also a desire for love, family and success. And it’s about learning to stop worrying so much about how men “perceive you, to the great detriment of how you yourself feel about them.”

At one nadir, King’s narrator stops at a bookstore on his way to work and looks through William Styron’s memoirs of depression, Visible darkness. She notes: “The writing has that austere lucidity of someone trying to tell you the truest thing they know.”

It’s not exactly King’s success in this novel. Writers and lovers is too generously infused with heart, soul, spirit and wisdom to be called harsh.

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Lululemon (LULU) share declines as market moves up: what you need to know https://ohalloranco.com/lululemon-lulu-share-declines-as-market-moves-up-what-you-need-to-know/ Tue, 09 Mar 2021 10:57:45 +0000 https://ohalloranco.com/lululemon-lulu-share-declines-as-market-moves-up-what-you-need-to-know/ Lululemon (LULU) closed the most recent trading day at $ 334.08, or -1.33% from the previous trading session. This change is lower than the S&P 500’s daily gain of 0.39%. Elsewhere, the Dow Jones gained 0.3%, while the tech-rich Nasdaq added 0.57%. Prior to today, shares of the sportswear maker had lost 7.81% in the […]]]>

Lululemon (LULU) closed the most recent trading day at $ 334.08, or -1.33% from the previous trading session. This change is lower than the S&P 500’s daily gain of 0.39%. Elsewhere, the Dow Jones gained 0.3%, while the tech-rich Nasdaq added 0.57%.

Prior to today, shares of the sportswear maker had lost 7.81% in the past month, trailing the gain in the consumer discretionary sector of 3.79% and the gain of 4.69% in the S&P 500 during this period.

LULU will seek to demonstrate strength as the next publication of its results approaches. On that day, LULU is expected to report earnings of $ 2.48 per share, which would represent 8.77% year-over-year growth. Our most recent consensus estimate projects quarterly revenue of $ 1.66 billion, up 18.74% from the previous year.

Any recent changes in analyst estimates for LULU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, the positive estimate revisions reflect analysts’ optimism about the business and profitability of the company.

Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

Zacks’ ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive record of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. The Zacks Consensus EPS estimate has risen 0.62% over the past month. LULU currently holds a Zacks rank of 3 (Maintain).

In terms of valuation, LULU is currently trading at a forward P / E ratio of 50.91. This valuation marks a premium over the sector’s average forward P / E of 19.61.

Meanwhile, LULU’s PEG ratio is currently 2.78. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Textiles – Apparel stocks have, on average, a PEG ratio of 2.46 based on yesterday’s closing prices.

The Textile – Clothing industry is part of the Consumer discretionary sector. This industry currently has a Zacks Industry Rank of 103, which places it in the top 41% of 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

To follow LULU in future trading sessions, be sure to use Zacks.com.

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lululemon Athletica inc. (LULU): Free Stock Analysis Report

To read this article on Zacks.com, click here.

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How much personal loan can I get? https://ohalloranco.com/how-much-personal-loan-can-i-get/ Tue, 09 Mar 2021 10:57:44 +0000 https://ohalloranco.com/how-much-personal-loan-can-i-get/ 2. Employment history Stable employment can go a long way in improving personal loan eligibility and the amount of money you can borrow. The longer you have been in a job (or in a similar position at another company), the more secure your position will appear. While an employment history has nothing to do with […]]]>

2. Employment history

Stable employment can go a long way in improving personal loan eligibility and the amount of money you can borrow. The longer you have been in a job (or in a similar position at another company), the more secure your position will appear. While an employment history has nothing to do with your credit score, it is another tool that the best personal lenders use to decide how likely you are to repay your personal loan funds.

3. Income and debt ratio

One of the most important factors in determining how much you can borrow is how much you earn each month. Lenders want to get an idea of ​​what your budget will look like once you add another monthly payment to the mix. One way for a lender to assess this is to check your debt-to-income ratio (DTI).

To calculate the DTI, a lender adds up your fixed monthly payments. This includes mortgage (or rent), auto loans, credit cards, and other personal loans. Once they have a total, they divide that number by your gross monthly income (the amount you earn before taxes and other deductions).

Here’s how a person can calculate their DTI:

Total monthly debt payments: $ 1,275
($ 850 mortgage + $ 325 car loan + $ 100 credit card)

Total monthly income, before tax: $ 5,000

DTI: $ 1,275 (monthly payments) ÷ $ 5,000 (monthly income) = 0.25 = 25%

In this case, the DTI is 25%. It is generally good to keep your DTI below 36%. While the maximum acceptable DTI varies by lender, it’s a good idea to keep yours as low as possible, especially if you want to qualify for a larger loan.

4. Secured loan vs unsecured loan

Most of the personal loans are unsecured loans. There is no collateral with an unsecured loan, so if you stop making payments, the lender cannot take any of your assets. (However, the lender can still sue you.) It can be difficult for some people to qualify for a large unsecured loan.

You may be able to borrow more with a secured loan. With a secured loan, you will bring something valuable as collateral. The bank can take possession of this collateral and sell if you do not repay the loan funds as agreed. You can usually borrow up to half the value of the collateral. If you have a car worth $ 20,000, you can probably get a loan of $ 10,000 by offering the car as collateral. Other examples of collateral for a secured loan include a car, savings account, retirement account, jewelry, or any other item of value you own.

How to qualify for a larger loan

If you qualify for a smaller than necessary personal loan, it is possible to increase the loan amount for which you are eligible. Here are some ideas for getting a loan for a larger amount:

  • Shop multiple lenders
  • Opt for a longer repayment term
  • Enlist a co-signer
  • Offer collateral (apply to a secured loan)
  • Pay off existing debt
  • Improve Your Credit Score
  • Increase your income

We’ll cover them in more depth below.

Shop multiple personal lenders

It’s always a good idea to consider multiple lenders, but it’s especially important if you want a large loan. Get prequalified with multiple lenders to find out how much money each lender can offer. Prequalification shouldn’t have an impact on your credit score (lenders use what is called a “gentle credit check” to get a feel for your credit score), so it’s all about. ‘a risk-free way to rate the store.

Opt for a longer repayment term

If you need the cash quickly, ask about the extended repayment period. The longer repayment term will lead to lower monthly payments (meaning the lender may be willing to give you the loan you need). Be aware, however, that longer repayment terms mean paying more interest over time.

Enlist a co-signer

If someone in your life has an established credit history and an excellent credit rating, consider asking them to co-sign the loan. The lender will then decide eligibility based on your two credit scores rather than just yours. Remember: when someone is kind enough to co-sign a loan for you, they are putting themselves in danger. If you miss a payment, they have to pay. Just get someone to co-sign a loan that you are sure you can repay.

Offer collateral (apply to a secured loan)

As stated above, if you are applying for an unsecured loan (an unsecured loan), you may be able to increase your loan amount by offering collateral (or applying for a secured loan). And if you’re already offering a guarantee, offering something of more value could increase the amount you’re approved for.

Pay off existing debt

If you are not approved for the loan amount you need, ask the lender for an explanation. Your DTI may be too high. If this is the case, work on paying off your debts before applying for a personal loan again.

Improve Your Credit Score

Raising your credit score can help you get approved or get a bigger loan. One of the fastest ways to improve your credit score is to check your credit report for errors. For example, an error could mean that you missed a payment that you didn’t miss, or that you took out a large loan that you never requested. These can lower your score. To get started, order a free copy of your credit report, check for errors, and report them to the credit bureau.

For more information, see our guide: What credit score do I need for a personal loan?

Increase your income

A new job or secondary activity may make you eligible for a larger loan amount. It will likely take months to see the fruits of parallel work – and months longer to provide a lender with proof of your increased income. Still, if you need a loan for something big like a debt consolidation or home improvement project, it may be worth using the extra time to fill your checking account while you wait.

Still have questions ?

Here are some more questions we answered:

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Fast foreclosures for mezzanine loans – watch out for borrowers https://ohalloranco.com/fast-foreclosures-for-mezzanine-loans-watch-out-for-borrowers/ Tue, 09 Mar 2021 10:57:44 +0000 https://ohalloranco.com/fast-foreclosures-for-mezzanine-loans-watch-out-for-borrowers/ Mezzanine loans are often the riskiest part of real estate capital. These lenders will suffer the first loss if the value of the collateral decreases. In the event of non-payment of the loan, they also have the fastest enforcement tool in foreclosure tool remission: the ability to conduct a Uniform Commercial Code foreclosure sale, a […]]]>

Mezzanine loans are often the riskiest part of real estate capital. These lenders will suffer the first loss if the value of the collateral decreases. In the event of non-payment of the loan, they also have the fastest enforcement tool in foreclosure tool remission: the ability to conduct a Uniform Commercial Code foreclosure sale, a process that can take some time. 30 to 60 days.

Indeed, the guarantee of a mezzanine loan is not a mortgage on real estate. Instead, the mezzanine borrower owns the company that actually owns the real estate. This company has already mortgaged the property to a mortgage lender. The guarantee of the mezzanine loan consists of the participation of the mezzanine borrower in the company that owns the property and has obtained the mortgage loan. These property interests are considered personal property, like a truckload of furniture. Seizures on personal property move quickly. They are not governed by the rules that slow down mortgage foreclosures.

In today’s miserable real estate markets, mezzanine lenders have started to show their muscles. If a mezzanine borrower misses a payment and the mezzanine lender wants to foreclose, the lender doesn’t need to give a series of multiple notices, file a complaint, wait for the borrower to respond, and then go through a series. of hearings and lawsuits – the complex process that can make a mortgage foreclosure take two years, at least in New York City. Instead, the mezzanine lender can notify the borrower that the lender intends to sell the collateral to the highest bidder at a UCC foreclosure auction.

Everything about this sale is required by law to be “commercially reasonable”. Thus, a mezzanine lender will need to advertise the sale in a commercially reasonable manner. Potential bidders will need to have commercially reasonable access to documents and information on the underlying property, and possibly tours of the property. The entire mezzanine lender’s sales process should be commercially reasonable.

A few mezzanine lenders have tried to organize UCC foreclosure sales during today’s pandemic. These efforts have sometimes triggered litigation in which the mezzanine borrower disputes the particular terms of the sale. Mezzanine borrowers have also argued that it is in and of itself unreasonable to try to host a mezzanine foreclosure sale during the pandemic because it is so difficult to hold an auction with bidders.

In a New York City case decided in May, the court temporarily blocked a mezzanine lender’s foreclosure sale, but then heard other arguments. In a brief ruling, the court cleared the sale. The borrower argued that the sale could not proceed due to the governor’s order blocking mortgage foreclosures. The court ruled that a UCC sale was not a mortgage foreclosure, but did not address the reasonableness of the sale, nor the borrower’s argument that in the current pandemic, it is impossible to have a commercially reasonable sale. Although the borrower argued that he would suffer an economic loss as a result of the lender’s sale proceedings, the court dismissed this concern as “speculative” and allowed the sale to proceed. (D2 Mark LLC v OREI VI Investments, LLC, Index No. 652259/2020, Supreme Court of the State of New York, County of New York.)

Another mezzanine borrower did better at the end of June. There, the lender had given the borrower 36 days notice of the sale, which would take place at a law firm or through a virtual / online auction. The successful bidder had to make a deposit of 10% of the purchase price and pay the balance within 24 hours. Until the lender changed their mind, the borrower was prohibited from bidding.

The mezzanine borrower argued that these and other procedural elements were commercially unreasonable. The borrower again argued that the governor’s order against mortgage foreclosures prevented the sale. Finally, the borrower argued that the sale violated the “good faith and fair use commitment” because the value of the collateral far exceeded the loan amount, and it was in bad faith on the part of the borrower. lender to foreclose due to a missed payment during a pandemic.

The court ordered the sale to be postponed for 30 days, to allow for more publicity and more clarity on the sale process. In theory, this also gives the mezzanine borrower some time to find new financing, although it usually takes longer than that, even under ideal circumstances. But the court cleared the sale, despite the pandemic and the governor’s order banning mortgage foreclosures. (1248 Mezz II LLC Associates vs. 12E48 Mezz II LLC, Index No. 651812/2020, Supreme Court of the State of New York, County of New York.)

Even though the second mezzanine borrower did better, he still faces a rapid loss of his investment due to the speed of mezzanine loan foreclosures.

Mezzanine borrowers have traditionally lived with this risk as part of the cost of securing an additional layer of higher risk financing. Ultimately, if a borrower wishes to mitigate risk, the borrower’s principals may need to bring in additional capital so that the borrower can discount the mezzanine loan and keep the lender at bay, at least for the month. In progress. Do managers want to throw money after the bad every month in the future?

The real estate carnage caused by the current pandemic could cause future mezzanine borrowers to try to negotiate a smoother, smoother – and most importantly, slower – mezzanine loan foreclosure process if a property runs into trouble. Whether mezzanine lenders will accept this is another discussion.

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Half of Jewish groups that applied got government loans totaling $ 264 million, survey finds https://ohalloranco.com/half-of-jewish-groups-that-applied-got-government-loans-totaling-264-million-survey-finds/ Tue, 09 Mar 2021 10:57:43 +0000 https://ohalloranco.com/half-of-jewish-groups-that-applied-got-government-loans-totaling-264-million-survey-finds/ (JTA) – A new investigation has found that Jewish organizations received at least $ 264 million in loans from the U.S. government under the recently passed stimulus bill. Right now, federal loans collectively represent the largest injection of money into the Jewish organizational world since the start of the COVID-19 pandemic. But even by conservative […]]]>

(JTA) – A new investigation has found that Jewish organizations received at least $ 264 million in loans from the U.S. government under the recently passed stimulus bill.

Right now, federal loans collectively represent the largest injection of money into the Jewish organizational world since the start of the COVID-19 pandemic. But even by conservative estimates, the money meets less than half of the anticipated needs of Jewish nonprofits.

A document produced last month by the Jewish Federations of North America, an umbrella group of community fundraising organizations, says Jewish organizations will need at least $ 650 million to weather the crisis. Other leaders cited higher numbers.

Jewish Federations CEO Eric Fingerhut said “it wouldn’t surprise me if it was higher.”

Fingerhut, whose group released its survey of American Jewish nonprofits on Wednesday, said the government “will prove to be the biggest contributor to filling the hole” in the near term.

He said the grants are “a huge, huge benefit” – but they will need to be supplemented.

“Private philanthropy will play a very, very important role. But the government will turn out to have been the biggest part, which is appropriate, ”Fingerhut said. “This is a government-wide crisis.”

The survey of Jewish federations gathered more than 1,100 responses from Jewish nonprofit associations that requested loans. About half of the respondents, 579 groups, said their applications were accepted, according to early results.

Loan amounts ranged from $ 5,000 to nearly $ 5 million, with a median of $ 256,000. Jewish federations estimate that in total Jewish groups could receive up to $ 500 million in government loans.

Some donors have pledged funds to help Jewish groups. This week, a coalition of prominent Jewish philanthropic foundations created an $ 80 million fund for groups that focus on “education, engagement and leadership.” Some Jewish federations, which act as communal funding bodies, have also announced COVID-19 relief funds. The New York UJA federation spent $ 44 million on organizations during the crisis.

The survey of Jewish federations indicated that in addition to the accepted applications, 418 others were still awaiting a response.

The government’s initial stimulus package, which began receiving demands earlier this month, provided nearly $ 350 billion in loans to small businesses and nonprofits. This pool, called the Paycheck Protection Program, has since been exhausted.

On Tuesday, the Senate approved a stimulus package that included an additional $ 320 billion in loans for small businesses. The House of Representatives is expected to vote on the package this week.

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Lebanese vendor staged $ 2 billion mozambique loan scheme, US jury said https://ohalloranco.com/lebanese-vendor-staged-2-billion-mozambique-loan-scheme-us-jury-said/ Tue, 09 Mar 2021 10:57:43 +0000 https://ohalloranco.com/lebanese-vendor-staged-2-billion-mozambique-loan-scheme-us-jury-said/ NEW YORK (Reuters) – Jean Boustani, a top seller of a Lebanese shipbuilding company, was the “mastermind” of a conspiracy to defraud American investors involving $ 2 billion in loans for projects in the Mozambican government, a US prosecutor told jurors at the start of his trial on Wednesday. Michael Schachter, an attorney for Boustani, […]]]>

NEW YORK (Reuters) – Jean Boustani, a top seller of a Lebanese shipbuilding company, was the “mastermind” of a conspiracy to defraud American investors involving $ 2 billion in loans for projects in the Mozambican government, a US prosecutor told jurors at the start of his trial on Wednesday.

Michael Schachter, an attorney for Boustani, said his client had never communicated with investors and had no connection with the United States, suggesting the case did not belong to the federal courtroom of Brooklyn.

“The United States is not the world’s policeman,” he said.

The statements kicked off what is expected to be a five-week trial that could shed light on a corruption scandal that contributed to Mozambique’s default in 2016.

The case revolves around three contracts awarded by Mozambique to Boustani’s employer, Privinvest, for the construction of a coastal defense system, a tuna fishing fleet and a shipyard. The projects were funded with nearly $ 2 billion in loans from Credit Suisse Group AG CSGN.S and the Russian lender VTB VTBR.MM.

Deputy U.S. attorney Margaret Moeser told jurors Boustani paid hundreds of millions of dollars in bribes to Mozambican officials and Credit Suisse bankers to secure contracts and loans.

Credit Suisse then sold some of those loans to investors, including some in the United States, who were falsely told that all the money was being used for legitimate government projects, Moeser said. While Privinvest delivered ships and equipment to Mozambique, she said, their value was grossly inflated.

Eventually, she said, the loans defaulted and investors lost their money.

Schachter did not dispute that Boustani, a Lebanese citizen, paid civil servants, what he called the “cost of doing business” in Mozambique. But he said it didn’t violate any US law.

In fact, Schachter said, Boustani played no role in selling the loans to investors and never communicated with anyone in the United States.

“He’s not a banker,” Schachter said. “He’s a boat salesman.

Three Credit Suisse bankers had already pleaded guilty in this case. One of them, Andrew Pearse, is prosecutors’ first witness at the trial.

Mozambique’s former finance minister Manuel Chang has also been charged in the case. Prosecutors said Chang, who is fighting extradition in South Africa, secretly asked the country’s government to guarantee the loans in exchange for bribes.

When loan guarantees went public in 2016, foreign donors halted support and Mozambique defaulted on its sovereign debt. It remains among the most indebted countries in the world.

Reporting by Brendan Pierson in New York; Editing by Richard Chang

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Broke Kenya seeks second Covid-19 loan from IMF https://ohalloranco.com/broke-kenya-seeks-second-covid-19-loan-from-imf/ https://ohalloranco.com/broke-kenya-seeks-second-covid-19-loan-from-imf/#respond Tue, 09 Mar 2021 10:57:42 +0000 https://ohalloranco.com/broke-kenya-seeks-second-covid-19-loan-from-imf/ Economy Broke Kenya seeks second Covid-19 loan from IMF Tuesday 03 November 2020 National Treasury building. PHOTO FILE | NMG By OTIATO GUGUYUMore from this author Summary Revenue collection underperformed by 40 billion shillings in the first two months of the fiscal year, July and August, amid coronavirus-related disruptions. The type of credit Kenya has […]]]>

Economy

Broke Kenya seeks second Covid-19 loan from IMF


National Treasury building. PHOTO FILE | NMG

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Summary

  • Revenue collection underperformed by 40 billion shillings in the first two months of the fiscal year, July and August, amid coronavirus-related disruptions.
  • The type of credit Kenya has requested from the IMF is a quick-disbursing facility where the money is fed directly into the budget to supplement public funds and is used at the discretion of the government.
  • Under the administration of former President Mwai Kibaki, Kenya has steered clear of this type of credit, with much of the support from institutions like the IMF and the World Bank taking the form of backstopping. to projects.

Kenya has asked for the second time in less than six months from the International Monetary Fund (IMF) for budget support to overcome the economic difficulties of the coronavirus.

IMF Resident Representative Tobias Rasmussen said the government has asked the Brettonwoods institution for another loan following the $ 739 million (Sh79.3) billion received in May that Kenya was seeking to help meet. economic shocks caused by the pandemic.

This signals the severity of the rapidly deteriorating cash situation in the country, marked by declining income and worsening debt service obligations.

Revenue collection underperformed by 40 billion shillings in the first two months of the fiscal year, July and August, amid coronavirus-related disruptions.

The type of credit Kenya has requested from the IMF is a quick-disbursing facility where the money is fed directly into the budget to supplement public funds and is used at the discretion of the government.

Under the administration of former President Mwai Kibaki, Kenya has steered clear of this type of credit, with much of the support from institutions like the IMF and the World Bank taking the form of backstopping. to projects.

“Following the support provided by the IMF in May under our Rapid Credit Facility (RCF), the Kenyan authorities have expressed their interest in an agreement with the Fund. IMF staff are in talks with the authorities for such a deal, ”Rasmussen told Business Daily in an email response.

Budget support funding is not tied to specific projects and can be used to fund politically important activities.

It comes amid a spike in Covid-19 cases which has seen infections soar 45% to 56,601 over the past month and deaths 42% to 1,027.

This could trigger further restrictions on the part of the government, risking reducing economic activity and depriving the Kenya Revenue Authority (KRA) of opportunities to increase tax collection.

Kenya’s economy shrank 5.7% in the second quarter of 2020, its first quarterly contraction since the global financial crisis 12 years ago, as the Covid-19 pandemic shut down businesses and kept businesses people at home.

The Treasury expects growth of less than 2.5% against 5.4% last year, and international institutions are forecasting lower.

Tax collections in the three months to September fell 14.69 percent to 317.6 billion shillings, raising fears that Kenya’s budget deficit for this fiscal year could grow due to revenue shortfalls .

The Treasury said in September that it was in talks with the World Bank for the provision of an additional budget support loan, which would potentially be used in fiscal year 2021/22.

The loan will be the World Bank’s third after the Washington-based lender began providing such funding to Kenya last year.

The Jubilee administration is expected to borrow an average of 2.5 billion shillings per day before the end of President Uhuru Kenyatta’s last term in August 2022, underlining his growing appetite for foreign debt.

Treasury chiefs in a draft budget review and outlook for new loans of 1.87 trillion shillings in the two years to June 2020 or 2.5 billion shillings per day, bringing Kenya’s debt to 8.06 trillion shillings.

If that happened, Mr. Kenyatta would have borrowed at least 6.1 trillion shillings to implement his manifesto in 10 years in power, having inherited just over 1.89 trillion shillings in June 2013.

The Jubilee administration has increased spending since 2013 to build new roads, a modern railroad, bridges and power plants, thus increasing borrowing to fill the budget deficit.

Rising debt has seen Kenya spend more than half of its taxes on loan repayments, leaving little money for building roads, affordable housing and renovating the ailing health sector.

But in the face of revenue shortfalls amid coronavirus disruptions and a willingness to complete projects before Mr Kenyatta leaves, the Treasury is expected to step up borrowing over the next two years.

The Parliamentary Budget Office (PBO) – which advises lawmakers on financial and budget matters – says income underperformance due to the Covid-19 pandemic is likely to push Kenya’s debt beyond legal threshold 9 trillion shillings, a year after Mr. Kenyatta left power.

“In previous years, the primary balance increased due to significant spending on infrastructure projects, power generation as well as social spending,” the PBO wrote in a budget surveillance report more early this month.

“The impact of Covid-19 on the economy is expected to negatively affect income generation. Based on current and planned spending demands, it is estimated that Kenya’s stock of debt could reach 9,200 billion shillings in FY 2022/23. “

Kenya plans to spend 904.7 billion shillings on debt repayment in the fiscal year ending June 2021, compared to 707.8 billion shillings the previous year against expected taxes of 1.52 trillion shillings. shillings.

This means that almost 60% of taxes will be spent on debt repayment.

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Saudi tourism megaproject to close $ 3.7 billion loan | Salaam Gateway https://ohalloranco.com/saudi-tourism-megaproject-to-close-3-7-billion-loan-salaam-gateway/ Tue, 09 Mar 2021 10:57:42 +0000 https://ohalloranco.com/saudi-tourism-megaproject-to-close-3-7-billion-loan-salaam-gateway/ Photo via Bloomberg Posted on November 01, 2020 via Bloomberg Politics & Policy – Saudi Arabia’s Red Sea Development Co. plans to close 14 billion riyal ($ 3.7 billion) loan from five national banks by year-end as it ramps up construction of a luxury tourism project the size of Belgium, its leader said the executive. […]]]>

Photo via Bloomberg

Posted on November 01, 2020 via Bloomberg Politics & Policy – Saudi Arabia’s Red Sea Development Co. plans to close 14 billion riyal ($ 3.7 billion) loan from five national banks by year-end as it ramps up construction of a luxury tourism project the size of Belgium, its leader said the executive.

The developer has been seeking funding for the project since last year, which spans dozens of islands off the kingdom’s west coast. Chairman and CEO John Pagano did not specify which banks would provide the loans.

So far, the company has awarded 7 billion riyals of contracts and plans to award a total of 15 billion riyals by the end of the year, Pagano said in an interview. A public-private partnership agreement for the project’s utilities is expected to be signed in a few days, and once it is in place and funding is secured, capital for the first phase of the project will be committed, he said. -he adds.

“We are now starting to ramp up our construction spending, so now is a good time to put the credit facility in place,” Pagano said.

Expanding tourism is a key goal of Crown Prince Mohammed bin Salman’s plan to transform the kingdom’s economy. Twin budget tensions created by the coronavirus pandemic and falling oil prices have not slowed work on two sprawling tourist developments on the Red Sea and an entertainment hub near the capital.

The Red Sea Development Co. project, owned by the Kingdom’s Public Investment Fund, is the largest recreation development, spanning over 25,900 square kilometers. Construction of a new international airport for the region has started and the company aims to open the first four hotels by the end of 2022 and 12 more the following year, Pagano said. This would complete the first phase of the project.

When the entire development is completed in 2030, it will target 1 million visitors per year, split evenly between national and international, he said.

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