Financial Services Blog

Showing 48 posts in Kentucky.

What You Should Know About Kentucky’s New Uniform Voidable Transactions Act

On January 1, 2016, the Uniform Voidable Transactions Act (UVTA) was enacted in Kentucky and can be found at KRS 378A.005 e seq.  The UVTA replaces KRS 378, which contained KRS 378.010, the Kentucky fraudulent conveyance statute, and KRS 378.060, the Kentucky preference statute.  Nationally, the UVTA will replace the Uniform Fraudulent Transfer Act (“UFTA”).  According to the Conference of Commissioners on Uniform State Laws, California, Georgia, Idaho, Minnesota, New Mexico, North Carolina, and North Dakota have joined Kentucky in enacting the UVTA.  Adoption of the UVTA is anticipated by the remaining states in the coming years.  Read More ›

New Kentucky Rules Regarding Slander of Title Claims and Lis Pendens Filings

The Supreme Court of Kentucky, on June 19, 2014, finalized its “to be published” decision in the case of Patricia W. Ballard v. 1400 Willow Council of Co-Owners, Inc.  Although this case arises from facts involving a condominium owner’s dispute with her building’s council of owners, the case is of interest to all financial institutions engaged in mortgage lending and real estate collections.  Read More ›

Should Kentucky Banks include Class Action Waiver Clauses in their Account Agreements?

A recent Kentucky Supreme Court decision, Schnuerle v. Insight Communications Co.,[1] declares that Kentucky courts may no longer strike down a Class Action Waiver Clause, found as part of a contractual Arbitration clause, based on a per se theory of unconscionability.  This ruling is a dramatic reversal of the Court’s previously issued opinion in this same case, which had ruled such waivers “substantively unconscionable.”[2] 

 

[1] Schnuerle v. Insight Communications Company LLC, 2012 WL 3631378 (Ky.) (hereafter “Schnuerle II”).

[2] Schnuerle v. Insight Communications Company LLC, 2010 WL 5129850 (Ky.).  Opinion withdrawn on rehearing Aug. 23, 2012 (hereafter “Schnuerle I”). Read More ›

What Do You Do With Your Out-of-State Judgment?

            You have successfully obtained a judgment against a party that owes you money.  The problem is, the jurisdiction in which you obtained the judgment is not the jurisdiction in which the debtor/defendant has assets.  Was your judgment obtained in vain? Read More ›

Kentucky’s Lien Release Statute ~ To err is human, and may be “good cause” excusing a delinquent release’s filing.

Kentucky’s Lien Release Statute, KRS 382.365, remains one of the most serious operational risks for real estate lenders.  But the Kentucky Supreme Court has brought new clarity to the Act’s “good cause” defense, in Hall v. Mortgage Electronic Registration Systems, Inc. (June 21, 2012), when the Court ruled that in certain circumstances simple human error may excuse a lender from the statute’s draconian penalty scheme that typically attaches to an untimely filed release of a recorded mortgage.  Read More ›

Attorney Fee Claims In Foreclosure Actions

Lenders pursuing foreclosure actions in states requiring judicial foreclosures should be mindful that claims for attorneys’ fees in foreclosure actions may need to be resolved in order to prevent enforcement issues.  A common procedural scenario under which the attorney fee issue may arise is when a lender seeks summary judgment in the foreclosure.  Read More ›

New Fin CEN Advisory To Financial Institutions To Report Elder Financial Exploitation

Financial institutions have an ongoing obligation to report to state and federal authorities suspicious activities regarding elder financial exploitation. Typically, financial exploitation is reported and investigated at the local level through adult protective services, local sheriff, county attorney and police departments. Under Kentucky law, any person who has reasonable cause to suspect an adult is suffering exploitation shall report or cause a report to be made. KRS 209.030. Read More ›

Prepetition Lis Pendens Notice Sufficient To Prevent Debtors-In-Possession From Avoiding Equitable Lien Under Exercise Of Strong-Arm Powers

The United States Bankruptcy Court for the Western District of Kentucky recently found that a vendor’s filing of a prepetition notice of lis pendens served to place any hypothetical judicial lien creditor, execution creditor, or purchaser of real property on notice of its equitable lien against the property for the unpaid portion of the purchase price. This prepetition notice of lis pendens prevented the debtors-in-possession from avoiding the vendor’s lien in exercise of their strong-arm powers under 11 U.S.C. § 544. Read More ›

Advisory To Financial Institutions On Filing Suspicious Activity Reports Regarding Elder Financial Exploitation

The Financial Crimes Enforcement Network (FinCEN) has issued an advisory to assist the financial industry in reporting instances of financial exploitation of the elderly. Financial exploitation of the elderly is considered elder abuse and is typically defined at the state level. This new guidance by the Financial Crimes Enforcement Network is found at FIN-2011-A003. In Indiana, the Department of Family and Social Services (FSSA) is often charged with the care of adults placed in protective care. See, Indiana Code §12-10-3-1, et al. Kentucky has similar regulations for reporting adult abuse, neglect or exploitation. See, Kentucky Revised Statutes Annotated, §209.030. 
  Read More ›

The Kentucky Condominium Act: Proving Uniform Policies Regarding The Creation, Management And Operation Of Condominium Units In Kentucky

During the 2010 regular session, the Kentucky General Assembly passed H.B. 391, the Kentucky Condominium Act (“KCA”). The new law took effect on January 1, 2011, overhauling and replacing Kentucky’s outdated and inconsistent condominium laws. The KCA is a streamlined version of the Uniform Condominium Act, which has seventy-four sections in its first four articles. The KCA eliminated twenty sections and modified several others.  Read More ›

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Attorney Spotlight

Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.

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