Chicago Quarterly

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Chicago Quarterly

1st Quarter 2011

From the President RMA Chicago Upcoming Events Greetings,

We're now about halfway through the RMA membership year, and I hope many of you have Commercial Loan taken advantage of the local dues waiver to Documentation Course attend chapter events at a discounted rate. If May 12-13, 2011 you haven't done so, there are more opportunities to attend events throughout the summer, so keep on the lookout. Dodd-Frank In fact, we have an event coming just around Breakfast Panel the corner on May 17th. We are hosting a Presentation breakfast panel which is covering the implications and applications of May 17, 2011 Dodd-Frank. We've got three great speakers who are going to provide Check-in: 8:00 a.m. insight into the regulation, the current status of rules implementation and Program: 8:30-9:30 a.m. how this regulatory leviathan is going to affect your institution. Space is limited so sign up early. There is more info on this event and the other upcoming open enrollment classes in the newsletter. Relationship Management We are starting the planning process for next year's events and the Skills for Commercial transition of chapter leadership. So if you've been thinking about expanding Lenders Course your networking circle and also want to get involved with leading the June 16, 2011 Chicago Chapter, now is your chance. We are looking for people interested in pitching in as little or as much time each month as they can to work on interesting RMA activities and projects. Core Concerns RMA volunteer benefits include: Conference June 12-14, 2011 Making professional contacts and new friends. Building your resume with RMA involvement. Taking advantage of educational opportunities. Contributing to the success of RMA. RMA Chicago Feel free to contact me if you want to learn more about the volunteer Board of Directors opportunities or want further information about the various committees. I'll be happy to tell you about the additional perks the Chicago Chapter gives 2010-2011 to volunteers as well. I look forward to seeing you at the next event!

Sincerely, President Michael J. Osty, Esquire Michael J. Osty, Esquire Great Lakes Capital Group, President, RMA Chicago Chapter LLC 312.327.1376 [email protected]

Immediate Past President You're invited to a Breakfast Panel Presentation on the Jennifer Dunneback JPMorgan Chase Bank 312.732.6984 Dodd-Frank Wall Street Reform jennifer.m.dunneback@ chase.com and Consumer Protection Act Tuesday, May 17, 2011 First Vice President Stephanie Allsopp Check-in: 8:00 a.m. Program: 8:30 - 9:30 a.m. JPMorgan 312.732.6280 Location: One South Wacker, Suite 2500, Chicago, IL stephanie.b.allsopp@ Hosted by the law firm of Pretzel & Stouffer jpmorgan.com

Our panel of recognized experts will take you through a practical review of Treasurer the Act and answer whether it is a "game changer"; what affect it will have Nick Sickler, CPA on your institution and your risk management department; and what will be John R. Waters & the revenue and cost implications of the Act. They will also provide Company practical tips and advice on developing the proper risk policy statements 312.554.3442 and ensuring that your institution's model is in line with its risk appetite. [email protected]

Who should attend? ~ Directors ~

Communications Chair risk management professionals Brian Callahan attorneys First Midwest Bank consumer and commercial lending officers 630.875.7341 regulatory professionals brian.callahan@ firstmidwest.com Panelists: Bernard Mason, Regulatory Relations Liaison, Risk Management Membership Chair Association. Mr. Mason serves as RMA's primary link to federal regulatory Jim Rudnicki and legislative activities in Washington. He joined RMA in February 2009 Rudnicki & Associates, following a 38-year career as a federal banking regulator. Mr. Mason most LLC recently served as the Office of Thrift Supervision's associate director and 630.466.0284 senior advisor, where he was responsible for agency operational risk, [email protected] business process, and regional oversight issues. Young Professionals Chairs Harry Cendrowski, CPA ABV CFF CFE CVA CFD CFFA, Cendrowski Michael Balsamo Corporate Advisors. Mr. Cendrowski is a founding member and Managing JPMorgan Chase Bank Director of Cendrowski Corporate Advisors. A seasoned risk professional 312.732.6972 with over three decades of experience, Mr. Cendrowski has helped for- michael.j.balsamo@ profit and nonprofit organizations assess and implement enterprise risk jpmchase.com management (ERM) processes, cultivate risk-centric environments, mitigate risk exposure, streamline operations, and deter fraud. Mr. Cendrowski is also a veteran of the private equity and venture capital Education Chair industries, where he has implemented back and middle office operations Vanessa Weathersby and performed due diligence assessments of potential portfolio Harris N.A. companies. 312.461.2983 vanessa.weathersby Craig McCrohon, Esq., Partner, Burke, Warren, MacKay & Serritella, P.C. @bmo.com Mr. McCrohon specializes in banking, corporate, and securities law. He advises banks and bank holding companies and boards of directors regarding corporate transactions, director and officer liability, corporate Programming Chair finance and regulatory matters. His work has included organizing bank David A. Smith holding companies, depository institution compliance, mergers and Federal Reserve Bank acquisitions and securities offerings. of Chicago 312.322.6162 [email protected] $40 - Non-members of RMA $25 - Members of RMA National ~~~~~~

RSVP by Tuesday, May 10th. RMA Representative Laura Martin RMA Central Region Mgr. A sincere thank you to the firm of Pretzel & Stouffer 859.384.1760 859.384.1767 fax for hosting this event. [email protected]

~~~~~~

Chapter Administrator Ginger Blunk PO Box 390972 Omaha NE 68139-0972

815.464.7439

402.933.4216 fax

[email protected]

For Your Information... ~~~~~~

RMA Customer Service Mechanics Lien Act 800.677.7621

By: Donald Patrick Eckler, [email protected]

Pretzel & Stouffer, Chartered www.pretzel-stouffer.com

In LaSalle Bank v. Cypress Creek 1, LP, the Illinois Supreme Court discussed at length the priority of lienholders, both mortgagees and Membership Notes mechanic lien claimants, under Section 16 of the Mechanics Lien Act.

In this case, the bank made a loan secured by the property upon which RMA Cares! improvements were made funded by draws as construction progressed. If you become Ultimately, the bank determined that the project was not going to be temporarily completed for the amount loaned and foreclosed on the property. Prior to unemployed while that, two contractors filed mechanics liens for the work they had you're an RMA performed. The bank was the successful purchaser at the foreclosure National member, the sale. RMA Transition Package will ease After a trial, the trial court allocated 40% of the proceeds of the sale to the your time between bank and the remaining 60% to the entities that had completed the jobs. improvements. The Court held that mechanics lienholders can have priority only with respect to the value of the property credited to those For more info, contact improvements and supply of materials for those improvements. The Court RMA's Membership overruled the Appellate Court which gave priority to the mechanics Department at lienholders with respect to improvements made after the entry of the 1-800-677-7621. mortgage.

RMA "Scary Lending Stories" For Members Only... Approved for Illinois CLE Credit Be sure to check out The "Scary Lending Stories" seminar, held on the Members Only Wednesday, October 27, 2010, has been approved for 1.0 section of www.rmahq.org. hour of Illinois general continuing legal education credit (including Professional Responsibility). This section gives you access to many The course, which featured Dan Zazove, a partner at the law advantages of your firm of Perkins Coie, LLP, and Michael Golman, Principal of RMA National membership. Michael Goldman and Associates, provided attorneys, bankers, and credit professionals with strategies to spot, Quite simply, it's your prevent, and resolve challenging lending situations that have gateway to timely become more prevalent in the current economy. industry information, the latest issue of the RMA Journal, the Please contact Vanessa Weathersby at (312) 461-2983 or member roster, and [email protected] with any questions. so much more.

Enhance Your Recoveries Utilizing Asset Searches on Legacy and Covered Loan Workouts Questions? Comments? By: Scott B. McCallum, [email protected] Need information?

Cendrowski Corporate Advisors Chicago Chapter www.cca-advisors.com Website

For workout credits, best-practice banks are aggressively discovering and Chapter Administrator: recovering assets not previously disclosed by recourse borrowers or [email protected] guarantors. Whether you work at an institution that is managing its own 815-464-7439 "legacy" workouts, or at one that has acquired failed bank "covered assets" from the FDIC, one of the critical steps to consider is conducting an asset RMA Headquarters search. Before charging off any deficiency, you want to know what assets Website the guarantor currently has and what assets have been transferred--some for legitimate reasons and some for not.

Workouts with FDIC loss-share agreements have special requirements-- proactive collection efforts and documentation of actions and findings--that need to be adhered to in order to recover the typical 80% reimbursement from the FDIC.In these cases, your bank didn't originate the loan, so you Do It Now!! may have only a "thin" file to work with and, consequently, not know much Before you close about the guarantor or about his/her financial capacity to pay down a this newsletter: deficiency. The most recent personal financial statement, if available at all, might be dated, lacking information and possibly misleading. ~ Register for

upcoming events... Quickly locating assets throughout the U.S., and even internationally, is the key to success. Searches consist of either a Phase 1 (quick evaluation) or ~ Register for a a Phase 2 (deeper-dive). For guarantors who you suspect are hiding course - remember, assets, a more in depth Phase 2 approach might be appropriate. Scope of there's a 10% the engagement could include: discount for

registrations received 30 days before the Analyzing the financial information provided by the guarantor; start date... Documenting changes in ownership of affiliated business entities; Documenting asset transfers from the guarantor to the spouse or ~ Consider your to others; involvement in RMA Analyzing the guarantor's cash flows and changes in reported for the upcoming year asset values for the period of the guarantee; and complete the Performing limited background checks on the guarantor and information form... affiliates; Interviewing the guarantor regarding the findings. ~ Share this newsletter by using the "Forward Email" The results will enhance your knowledge and negotiating position. Also, feature at the bottom the FDIC will audit the file pursuant to the loss-share agreement. It is very of the page... important for you to document your efforts to maximize collections against covered loan borrowers and guarantors.

Quickly finding assets can help maximize recoveries, minimize charge-offs and enhance your chances of obtaining a successful reimbursement from the FDIC on a loss-share agreement. Typical database background service providers often will not be able to locate hidden assets of sophisticated guarantors. The use of an experienced investigator is paramount to achieving success. We are also starting to see some asset search clients think about incorporating background or asset searches in underwriting of new loans, as well as more closely scrutinize background checks conducted by lead banks when considering new loan participations.

Upcoming Education

Courses

In conjunction with RMA National, the Chicago Chapter is pleased to co-sponsor the following open enrollment courses:

(click on the title for registration information)

Commercial Loan Documentation "Ensuring legal compliance in the lending arrangement." Instructor: Michael Weissman from the Chicago law firm of Levin Ginsburg. Mr. Weissman writes the monthly column

entitled "Tales of Whoa" for the RMA Journal and has spoken at a number of Annual Credit Conferences. May 11-12, 2011

Federal Reserve Bank of Chicago 230 S. LaSalle Street, Chicago, IL There's still time to take advantage of this course - call ASAP!

Relationship Management Skills for Commercial Lenders: Identifying Risks & Selling Opportunities "Monitoring the existing client while seeking cross-sell opportunities."

June 16, 2011 Federal Reserve Bank of Chicago

230 S. LaSalle Street, Chicago, IL

Did you know??? You can receive a 10% discount when you register 30 days or more before the start date of the course!

CFO Magazine's Core Concerns Conference June 12-14, 2011 ~ Chicago, IL

The CFO Core Concerns Conference gives finance executives real solutions to the top concerns identified by 1,000 of their peers in the quarterly Duke University/CFO Magazine Global Business Outlook Survey. Attend and walk away with a tactical game plan to help you:

capture new sources of demand manage risk and improve margins ensure M&A success reduce your healthcare costs motivate your workforce

Click here for the agenda and speaker line-up. RMA members receive a $600 discount! Delegates will earn up to 21 CPE Credits!

Email [email protected] for more information.

Recap - ABC Mixer Networking Event at de cero

Jennifer Dunneback, Immediate Past President th On Thursday night, January 20 , the RMA Chicago Chapter hosted a lively ABC Mixer at 'de cero taquiera' at 814 West Randolph. Approximately 50 attorneys, bankers, and consultants

(both members and friends of RMA) came out to network, enjoy excellent food and beverage and have some fun. My colleague Mike Balsamo & I had the privilege of meeting all the event's attendees as everyone registered. Having been involved and active in the RMA Chicago Chapter for over seven years, it was very nice to see members who have been active with the Chapter over time.

I saw more card exchanges than gun slinging in a western movie, and witnessed people meeting for the first time and some old contacts meeting up again and catching up. Conversation topics ranged from the state of the economy, to particular business practices, balancing work/life, who should know whom to get things done, and how business has been picking up lately. Some of our members have become friends or close acquaintances over time, so many fun conversations about the Bulls and Hawks, and personal updates commenced as well.

Two lucky mixer attendees won $50 de cero gift certificates in our raffle towards the end of the night: Michael Wells (MB

Financial) and Karen Giambalvo (Harris) - congrats again to you both.

As a Board Member of the RMA, I want to thank each of you that attended, and encourage you all to come again. For those of you that could not make it out, I hope to see you at our next mixer.

You're Invited to Get Involved!

Are you looking for a way to widen your circle of contacts? Do you enjoy planning events and meetings that will reach out to others with similar career interests?

Consider joining the RMA Chicago Chapter as we begin planning for the 2011-12 year. Transition for events and chapter leadership will begin soon and we invite you to get involved.

Feel free to contact the Chapter's current president, Mike Osty, at [email protected], if you are interested in learning more about the volunteer opportunities.

Discover the additional perks the Chicago Chapter gives to volunteers as well.

Start the process by completing this form and returning it to Mike Osty at the number provided on the form.

Welcome New Institution! Resource Bank NA

Welcome New Members! Daniel J. Barrett, Midland States Bank Harry Cendrowski, Cendrowski Corporate Advisors Sebastian Dabrowski, First Chicago Bank & Trust Donald P. Eckler, Pretzel & Stouffer Chartered Kristin R. Garrett, PrivateBank & Trust Company Brian P. Hawes, Resource Bank NA Jacqueline M. Helmrick, Aronberg Goldgehn Davis & Garmisa Colleen Henkel, First National Bank Rade Jovanovic, Crowe Horwath LLP Michael R. Kowall, Harris National Association Mark Larocca, James L. O'Brien Associates Stacia Little, Resource Bank NA Scott B. McCallum, Cendrowski Corporate Advisors David McCann, Resource Bank NA Kevin C. O'Neill, Associated Bank NA Tamina O'Neill, PrivateBank & Trust Company Chris Rude, Harris Bank NA Daniel Scott, First Chicago Bank & Trust Hamid M. Shahid, Associated Bank, NA Giovanni Signa, Cardinal Growth Corp Jim Sinegal, Morningstar Frank J. Solyom, TCF National Bank Kathryn S. Thurston, PrivateBank & Trust Company James Turano, First Chicago Bank & Trust Syed Vakeel, First Chicago Bank & Trust Adriana Venegas-Pinedo, Northern Trust Company

*** Sponsorships ***

Is your firm interested in marketing to a few hundred financial services and related professionals? Sponsoring an RMA event might be just the right venue. Your firm will be recognized on material marketing before, after, and highlighted during the meeting.

The investment of sponsorship is an excellent bargain. With sponsorship opportunities available in 2011, all you need to do to set up sponsoring an event is to contact Mike Osty for details. Mike's email address is: [email protected].

Ginger Blunk Chapter Administrator RMA Chicago Chapter [email protected]

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