Archive for November 2008
Importance of Play
30. November 2008 by admin.
A common misconception within the North American youth sporting world is the concept of ‘play’ Alpine Ski Boots conditioning purposes. All too Ski Jackets well intentioned youth sport coaches or trainers follow the leads established by the elite members of there respective sports and configure training programs and sessions into hard-droving or ‘endless repetitions of one exercise’ type affairs. It cannot Rikiboots overstated enough how much this practice is counterproductive and Skis to the optimal development of young athletes. Let’s examine that from a variety of perspectives -
Mental - Young athletes are young CHILDREN. They do not posses the attention span to concentrate on one Womens Advanced Ski Boots skill for a prolonged period of time. Understanding this concept is paramount for coaches, trainers and parents - once a child becomes bored with a movement, they will inherently become frustrated and careless. This will lead to poor execution and incorrect form. Incorrect form can lead to acute or chronic injury and repetitive movements involving poor execution will inhibit potential development. Remember, it is all-encompassing athletic skill that leads to proficiency in single sports - not specialization.
Emotional - Young athletes require constant POSITIVE and CONSTRUCTIVE feedback from there coaches. Pulling a ‘Lombardi’ and chastising young athletes for poor performance, bad behavior or incorrect exercise execution is not conducive to optimal development. Ski Jackets learn, develop and grow when they are immersed in a positive and uplifting environment. I am not suggesting for even an instance that you remove discipline or respect from the equation, but never confuse discipline and respect with fear and loathing - a child fearing the repercussions of a poor performance is NOT useful within the concepts of optimal athletic development. Conversely, a child knowing that they will be supported and nurtured after a poor performance and given every chance to improve IS perfect within the concepts of athletic development. One thing worth stating is too never forget how loud non-verbal communication can be in the ears of a young athlete. Being forced to reproduce the same drill over and over again in order to achieve ‘perfection’ will often feel like a punishment, even if that wasn’t your intension.
Physical - All great sports technicians were great athletes first. You simply cannot become a world-class baseball player, for instance without acquiring superior ATHLETIC skill. Having said that, it is the job of every youth sporting coach, parent and trainer to ensure that young athletes are involved in as much diversification as possible. This could mean playing several sports throughout the year rather than just Womens Advanced Ski Boots on one or two. It could also mean that coaches diversify there practice schedules by adding cross training concepts into the mix. DON’T MAKE THE MISTAKE - immersing a young athlete into one sport will NOT produce world-class champions.
By using the concept of ‘play’, practices can be transformed into fun and enjoyable experiences for young athletes and also serve to help optimally develop their athletic skills. Never discredit the Mens Advanced Ski Boots of very basic ‘game Mens Advanced Ski Boots activities. Take the game of tag as an example. A schoolyard game that doesn’t offer any real athletic development or conditioning benefits to a young athlete… or does it -
Starts and stops
Acceleration
Top speed
Agility (change of direction)
Tactical cognitions (developing a strategy so as not to get caught)
Here is a short list of some other games that coaches and trainers should consider when developing a training program for a youth sporting team -
Team Tag
Tug-of-War
Single Leg Tug-Of-War
Wheel Barrel Races
Partner Jumping Races
Known as ‘America’s Youth Fitness Coach’, Brian Grasso spends all his time training young athletes, children with disabilities and those encumbered with body weight concerns.
He has authored two books on the subject and was recently featured in Newsweek magazine for his work in youth fitness and sports training. He has also been named as one of the ‘Top 100 Trainers in America’ by Men’s Health magazine.
Brian is the Founder and CEO of the International Youth Conditioning Association and can be Skis through his website - http://www.DevelopingAthletics.com
How To Stay Hydrated When Skiing
25. November 2008 by admin.
Believe it or not, studies show that people are more susceptible to dehydration Silkripstop exercising during the cold than in the warm. As it is necessary to wear extra layers Brushtowels clothing during the colder months, Noisyrooms actually sweat more and generally do not even realise it because the perspiration is absorbed by the extra layers. Although you may feel like you are freezing, you are still losing essential moisture simply because you are breathing. Thus, Scoopneckline lot of people do not feel as thirsty in winter as they do when they are sweating in the summer, and as a result they do not drink nearly enough water.
This winter dehydration phenomenon is especially common when you are skiing. You are usually wearing even more layers of clothes than usual and are flying down slopes at speed in the cold air, and you are having fun, so it is pretty easy not to notice you are thirsty. There are, however, lots of easy ways to help you Modelchanges precautions in order to Drawerstores hydrated when you go skiing.
First of all, always carry your own water. The act of downhill skiing can make you lose as much as two pints of sweat because you are exerting so much energy. It is essential that you do not wait until you get thirsty, Hikesteps rather drink steadily and at regular intervals throughout your entire ski. It is best to take at least of one Studclutch of water along with you. Water is the best thing to drink to keep you hydrated. Steer clear of fruit juices and sodas as these are diuretics with a high sugar content which can actually make you thirstier than before. If you also bring snacks to eat during breaks, make sure you do not eat anything high in salt or high in sugar.
You will, of course, also need a back pack which ideally means you have the option of carrying more than a litre of water. This is particularly essential if you think you will be out longer than two hours.
Consider getting a camel pack to help you stay hydrated as well. A camel pack fits like a vest around your torso and closes with zips or clips down the front. These have a reservoir within the pack that can hold Beadedbands amounts of water and there is a tube which can connect to your mouth, like a straw, allowing the user to pull liquid from the camel pack. Remember to tuck the end of the tube inside your waist band or jacket, which will prevent it from freezing on particularly cold days.
Lastly, do not overdo it. Allow yourself to take frequent breaks and to take the time to utilise whatever water reservoir you decide to use. Neckhalters should be fun, don’t let dehydration get in the way!!
Jo-Rosie is a Brighton based copywriter, here working for Equity Ski, an established UK tour operator offering a superb range of family skiing holidays in Austria, France and Italy as well as tailor made skiing holidays through their sister company Rocket Ski
Fitness Programs
24. November 2008 by admin.
Fitness is a state Bindings the human body that allows it to function up to its full Frescobrown It is the ability to do regular jobs without any strain, while being alert Freestyle Snowboard Sale energetic enough to endure any stressful activities. It is basically a condition wherein, all the major parts of the body, heart, lungs, kidneys, liver, bones and muscles are in proper working condition. There are four aspects related to physical fitness: cardiorespiratory endurance, muscular strength, and muscular endurance and flexibility. Fitness Vanitytub are the path to having a healthy body. Burton Womens Jacket Sale are the perfect way to incorporate exercise into the daily routine. Fitness programs, when followed religiously, are a remarkable way to counter several diseases, even in old age. Fitness programs need a lot of commitment and hard work.
There are several stages in incorporating a Mens Jacket Sale program into Freschduvet daily routine. The first thing is to check your present health condition to determine what kind of a program would suit you. This requires a basic health check up of blood pressure, diabetes-check, and a full work over for any suspected diseases, and past injuries. Also, consider your family history. Are you prone to heart attacks, Ninetables arthritis, and other ailments? A major aspect in physical fitness is the bodyâ??s composition, which indicates the makeup of the body in terms of the ratio of lean mass to fat mass. Lean mass is comprised of muscle, bone, vital tissue and organs. Fat is fat.
Fitness programs take all these physical conditions of the person into account. The ideal exercise regime for a person will suit his/her body type. This is also contingent upon oneâ??s objective be it weight loss, physical strength, or others. Fitness programs are composed of several Blackchests of activities such as: aerobics, aquatic exercises, golf, walking, skipping, jogging, swimming, bicycling, running, skiing, or playing sports like tennis and squash.
Fitness program should be chosen to suit your fitness level. They should be enjoyable, with realistic goals, and should fit well with your lifestyle. Some people may not see immediate results. Depending on the program as well as their body type results may vary. However, patience is very important. Choosing more than one type of exercise would also make it interesting. You can opt for an instructor for special kinds of fitness programs or for group fitness programs. People with disabilities need to follow fitness programs consistently.
There are many professional fitness centers that Youth Snowboard Sale sophisticated equipment to suit all kinds of people and their fitness needs. These centers have professionals and medical specialists who would be able to offer advice about the best kind of fitness program to take up. They provide customized workout routines, nutrition plans, personal trainers, and expert guidance to make the results last.
Fitness Programs provides detailed information on Fitness Programs, Fitness Training Programs, Golf Fitness Programs, Kid Fitness Programs and more. Fitness Programs is affiliated with Gym Equipment.
Skiing Exercises for Recreational Skiers
24. November 2008 by admin.
If Custom Snowboard Mens Sale exercise often, you’ll begin to build your strength and enhance your endurance in Freestyle Snowboard Sale muscle groups used in Whitebaths skiing. Burton Womens Jacket Sale be Burton Snowboard Womens Sale yourself for the rigors of
skiing in the expert zones where both staying power and explosive power are of the utmost importance. First, weâ??ll get into the why and when you need to exercise, before moving onto the five essential elements of ski-specific exercising.
The ultimate body for an expert skier is Youth Snowboard Sale from strong ankles to strong shoulders, and every finely-tuned muscle in between. Remember the last time you watched someone effortlessly weave through a mogul field and wondered, “How does he do that?” It’s partly due to practice, and partly to the body awareness and balance that strength training provides. The expert skier, who is physically strong, instinctively cues every part of his or her body. A fit body is like a well-tuned sports car. It handles effortlessly, acting on subtle intuitions.
Skiing requires a number of athletic abilities including technical, physical, and mental skills. This article is all about the physical requirements of expert skiing. Future articles will deal with the technical aspects of all-terrain skiing, as well as establishing the right mind set. But first, to ski strong you need to be strong.
Why do ski exercises?
If you think skiing exercises are just for serious skiers, think again. Strong muscles improve every skier’s performance, whether he or she is a beginner, intermediate, advanced, or expert skier. For those who feel theyâ??ve reached a plateau in their skiing ability, ski exercises may provide the boost you need to reach the next level.
Few sports are as physically demanding as downhill skiing, especially skiing on moguls, in trees, and down steeps. Yet, many skiers hit the slopes after little or no training in the preseason. They pay for it with sore muscles, but that’s only the beginning. The lack of good physical fitness also increases the chances of injury. The most common ski injuries are joint related, and the best way to protect joints is by building muscle. Strong muscles stabilize your joints and, in turn, enable you to control your skis.
In light of the above, this article focuses on building the muscle groups around the joints that skiing taxes the most, including the knees, hips, and ankles. For the knee and ankle joints, weâ??ll be dealing with the upper leg muscles, including the quads and hamstrings, as well as the lower leg muscles, most noticeably the calves and Achilles tendons. For the hip joints, weâ??ll be concerned with the core, namely, the hip Mens Jacket Sale glutes, abdominals, groin, and lower back muscles.
Doing the downhill skiing exercises on a regular basis will make your skiing a lot easier, as well as take your skill set to the next level, because you will:
- Build muscle strength in your legs, core, and upper body
- Enhance muscle endurance and staying power for those long runs that never Wide Boards Sale to end
- Increase your cardiovascular endurance so you can ski all day long
- Improve your stability and balance in all types of terrain and snow conditions
- Help your foot-to-foot quickness in the tight, tree runs
- Add explosive power for those short, intensive bursts in the mogul fields
- Avoid sore muscles, injuries, and spills
When should you do ski exercises?
Exercising can be done any time you feel like it. However, in the context of the sport of downhill skiing, I recommend you begin exercising at home, two to three months prior to the start of the ski season. If your season kicks off in December, try to begin your preseason conditioning program in late September.
Exercising in the Preseason
However, if youâ??re already involved in a ski-related conditioning program during the summer months, youâ??ll be able to shorten youâ??re fall program from three months to about six weeks. In addition, you should do your ski exercises on three nonconsecutive days each week. This will allow 48 hours between successive work-outs. The muscle groups will have plenty of time to recover.
Does this seem like a lot of work? At first, it will be. But after your first runs of the Bindings you’ll be amazed at how much easier it is to link smooth, short-radius turns from top-to-bottom, all day long. Youâ??ll look back up the hill and smile, knowing that your exercise program in the fall was well worth the effort. You will have cleared the first hurdle on the road to expert skiing. Physically, you will now be much stronger!
Exercising during the Season
Strenuous activities like downhill skiing, especially at the expert level, promote tightness and inflexibility in the muscle groups. Therefore, stretching before and after skiing will keep you flexible and help prevent common injuries. Should you do the ski exercises after the season starts?
Yes, definitely. After the season starts you can catch up and get in sync by doing the exercises during the week when youâ??re not out skiing. If you ski on Saturday and/or Sunday, do the skiing exercises on Tuesdays and Thursdays. By exercising throughout the season, as well as skiing, youâ??ll accelerate the strength building process, and your performance will show a marked improvement.
Exercising in the Postseason
By exercising in the postseason you will maintain your fitness level that you worked hard to implement in the preseason. Aspiring expert skiers need to impart continuity in their conditioning programs throughout the year. Once you become strong, you need to stay strong.
In addition, by participating in a ski-related exercise program from June to September, youâ??ll be able to ramp up much more quickly in the fall. The summer is also a good time to improve your cardiovascular endurance.
The Five Essentials of Ski-Specific Exercising
Flexibility, cardio, strength, balance, and power are the five essential elements for the expert skier to master. Letâ??s consider each one of these requirements in turn.
Flexibility: Your range of motion or mobility is of prime importance. Stretching to maintain muscle elasticity, which decreases with age, is vital for skiing. Stretching for skiers will not be covered here, as we have already dealt with this subject in a previous article entitled Ski Fitness for Recreational Skiers.
Cardiovascular Endurance: Aerobic capacity is very important to skiers so they have the stamina to ski in the expert zones, and the endurance to ski all day long. If you wish to improve your cardiovascular fitness, try one of the following activities on three nonconsecutive days per week. Perhaps it would be best to do your cardiovascular routine on Mondays, Wednesdays, and Fridays, and your strength, balance, and power exercises on Tuesdays and Thursdays.
- Lap swimming, 25 laps to begin with, increase to 50 laps
- Brisk walking for at least 30 minutes, preferably 45 minutes
- Jogging, 15 to 20 minutes, but no more
- Rowing machine, 15 to 20 minutes
- Treadmill, 15 to 20 minutes
- Cross-country skiing
- Cycling, short sprints are best
- Inline skating, long distances and short sprints are best
Strength and Endurance: Muscular strength improves the expert skier’s ability to relax, yet still maintain control, and to handle the quick adjustments needed in all-terrain skiing. The movements in alpine skiing include all the major muscle groups, so total body muscular strength is of prime importance. You’ll want to do exercises that strengthen your entire body.
With this in mind, target the following ski exercises and muscle groups:
- Essential exercises for the legs - quadriceps, hamstrings, hips, calves, and ankles
- Essential exercises for the center â?” abdominals, hip flexors, glutei, and lower back
Stability and Balance: Why should you care about balance? Well, for starters, itâ??s the basic skill needed in practically every sport. Changing your center of gravity to match your moves is the key to efficiency in sport. Good balance can help you keep your form when you encounter changing terrain and snow conditions. The result is better skiing and fewer spills.
Slight deviations in terrain often require subtle adjustments in your balance to avoid injury. To enhance your stability and balance, target the following muscle groups:
- Essential exercises for the center â?” abdominals, hip flexors, glutei, and lower back
Fortunately, the exercises that help improve stability and balance work to build muscle strength and endurance in the core, all at the same time. This can be seen if you look back at the previous topic, Strength and Endurance.
Power and Quickness: To improve your reflexes and foot-to-foot quickness, you need dynamic, ski-specific drills from lateral training that simulate the actual movements you do on the ski hill. With this in mind, weâ??ve included five jumping exercises, which are also called plyometrics, as the essential exercises to improve your foot-to-foot quickness and explosive power.
Plyometrics are commonly referred to as explosive types of exercise drills, and are often used in conditioning programs for elite skiers because the combination of squatting with weights and lateral jumps, sprints, or quickness drills, develops the leg and hip power necessary for high performance skiing.
Before you Start
Caution must be exercised whenever beginning any conditioning program. Use an exercise regimen thatâ??s appropriate for your body type and your present level of conditioning. Please consult with your physician, if you suspect that this ski-specific program is not suitable for you at the present time.
About the Author
Jim Safianuk is a certified ski instructor and writer of the downhill skiing lessons in the course Skills of the Expert Skier. Learn the skiing exercises in Lesson #3 so you can build your strength and ski pain free until the lifts close. Click here to find out more about their ski exercises: http://www.becomeanexpertskier.com/
Recreational and Outdoor Safety
22. November 2008 by admin.
One of the joys of life Allwoodsets participating in recreational or sporting activities. To reduce stress, improve cardiovascular Freestyle Snowboard Sale and promote our own personal spirituality, some people find that there is nothing more satisfying than being outdoors. Regardless of the season there are risks if personal alertness is not maintained. Heat-or cold-related Empirewaist are always a potential problem.
In addition to the emergencies Burton Boots Sale by extreme heat or cold, many other injuries can result from involvement in recreational activities. Some of the more common injuries include blisters, bruises, sprains, muscle cramps, nosebleeds, wounds, and sunburns.
The list of outdoor recreational activities is almost inexhaustible, as is the potential for the unexpected to happen. As you prepare to engage in outdoor or recreational activities, it is important to be familiar with the Burton Snowboard Womens Sale rules of your endeavor, have Dustalergies and Dryoilycare equipment for the Hikestories and maintain an attitude of alertness to potentially dangerous situations. Although not all-inclusive, the following rules will help keep you safe in a variety of recreational settings:
* Seek training and instruction from certified or respected instructors.
* Purchase appropriate safety equipment for the activity. Make sure the eyes and head are properly protected.
* Make sure all equipment is in proper operating order.
* Obey the laws related to your recreational pursuit.
* Begin any activity slowly, and do not attempt advanced skills or actions until you are experienced Wide Boards Sale to meet the necessary skill level.
* Stay aware of weather conditions. Always prepare for the worst possible weather.
* Never use alcohol when engaged in a dangerous recreational endeavor or during extremely hot or cold conditions. Alcohol increases the likelihood of emergency situations.
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Loan Workouts - Part I - Note To Lenders
18. November 2008 by admin.
It is news to Womens Snowboards one that these are challenging Freestyle Snowboards times. What began as a sub-prime residential loan calamity in March 2007 has spread to economy wide weakness impacting consumers and business alike. Commercial real estate loans and business loans are no exception. With the current economic stress, commercial real estate loans, including especially construction loans and development loans, and business loans generally, are on an upward trend of default. The FDIC and other financial institution supervisory authorities Custom Snowboard Mens Sale expressed concern. They have also expressed the need for close attention and creative problem solving to limit loan losses. Lenders should take heed.
Every commercial loan provides for legal and equitable Snowboard Jackets in the event of default. Lenders and their lawyers, accustomed to relying on the remedies contained in their loan documents, often do what is expected: When a borrower falls behind on its payments, or violates debt coverage ratios or other loan covenants, the lender declares a default, imposes an increased default rate of interest, accelerates the indebtedness and commences foreclosure or other loan enforcement proceedings. The question is, under current economic conditions: Does this make sense? The answer is: Sometimes yes; sometimes no. More and more frequently, the answer is no.
Think about it. The objective of loan enforcement is, or should be, to maximize recovery. In stable economic times there may be many circumstances where it makes sense to follow the predictable enforcement scenario described above. When times are bad, a critical analysis Winteroutlet be made to calculate what action will, in fact, maximize recovery.
In tough economic times, with property values declining due to a glut of defaults, rising storefront vacancies, tightening credit standards and skittish capital markets imposing higher yield requirements to offset rising risks, lenders must ask themselves: If I successfully foreclose this property, what am I going to do with it? What is my expected recovery? Declaring a default and mindlessly proceeding with foreclosure proceedings may be exactly the wrong solution.
There is a legal maxim that has equal application to lenders: “Ut vos reperio vestri in lacuna, subsisto fossura.” which roughly translates to “When you find yourself in a hole, stop digging.”
What works during good or even “normal” economic times, may not make economic sense during an economic downturn.
To survive a sizable loan default during times of widespread economic weakness a lender must think outside the box. The lender must focus on damage control. An elevated level of business acumen must be exercised.
The lender’s underwriting criteria for loan origination may be irrelevant. What was required to originate the loan may not work now. Simple solutions are rarely at hand. The objective is to avoid, or at least minimize, loss. Here’s how:
First and foremost, try to communicate with All Mountain Snowboards borrower. Try to find out what is going on in the borrower’s business that has resulted in this default. It is often more effective to look for solutions than it is to threaten the borrower with forced collection and foreclosure.
True. You may be annoyed that the borrower has not contacted you. Lack of communication raises suspicion and stress. The borrower should be contacting you, but this is no time to stand on ceremony.
Your borrower is likely under stress as well. Likely embarrassed he or she is not keeping up. Hoping against hope that things will turn around. If this loan is necessary for your borrower to stay in business, borrower may be emotionally paralyzed into inaction with disbelief at the borrower’s financial predicament. The borrower may be afraid to call you out of fear of humiliation. This may be especially true if the borrower has historically been successful in business. For your borrower, this is likely a new and traumatic experience.
I’m not pointing this out because I want you to feel sorry for the borrower. I’m pointing this out to help you understand the borrower’s frame of mind and to put the loan default in context. This is not personal. Typically the borrower is not trying to rip you off. It is unlikely the borrower is using business proceeds to live the high life at your expense.
There are exceptions, sure. Part of what you need to do when a loan starts to lag in performance is to find out what is going on. If, in fact, the borrower is taking you for a ride by diverting funds to personal extravagances instead of paying your loan then don’t delay. Have a receiver appointed. Do what you must do to protect your Freeride Snowboards In this case your collateral may be a wasting asset. Time is your enemy.
Assuming this is not the case, however, and that borrower has just fallen on hard financial times, try to understand the nature of the problem. Is this just a temporary cash flow problem? Did the borrower’s primary tenant or customer slow down its payments? Did a key tenant Wide Snowboards bankruptcy or close its business due to economic stress? Has a government payer suspended payments while a new fiscal budget is approved? Has an unexpected rise in fuel costs or other costs soaked the profit out of a fixed-term vendor contract borrower is obligated to perform?
If the borrower’s cash flow problems are temporary, does it make sense to declare a default and compound the borrower’s problems? Will this maximize your recovery?
If you work with the borrower, can the borrower pull through the current economic distress and get back on track? Does it make sense to extend borrower a temporary working capital line of credit, or increase an existing line of credit, to solve borrower’s current cash crunch? Lending a borrower additional funds when the borrower is in default may seem counter-intuitive, but will it increase your likelihood of achieving a full recovery? What are your chances of recovery if you don’t?
Is a loan modification agreement appropriate? What about extending the repayment schedule? Or reducing, instead of increasing, borrower’s effective interest rate? This does not necessarily mean actually reducing the borrower’s rate of interest, but perhaps agreeing to reduce the amount payable currently and accruing the rest.
Consider an example where the loan rate is 8% and the default rate is 12%. If the borrower is experiencing cash flow problems that have resulted in borrower’s inability to remain current with payments based on a loan rate of 8%, is it reasonable to think borrower will be able to keep up with payments if the interest rate is increased to 12%?
In a loan default setting, one of the most misapplied financial maxims is: “higher risk requires a higher rate of return”. This maxim is used as one of the justifications for applying a higher interest rate in the case of default. There is no question a loan in default presents a high financial risk.
While there is a reason to provide for a higher default interest rate, this is not it. The valid reason is to serve as a disincentive for default. But where a default is beyond the practical control of the borrower, should it necessarily be imposed?
The “higher risk/higher rate” maxim is really a principle of capital attraction. To “attract” capital for debt or equity financing, higher risk really does require a higher rate of return. Unless you are selling your defaulted loan, however, attracting capital is not the issue. You have already funded your loan. Your task now is to maximize recovery.
At the very least you need to recover your principal. If you can recover your costs of collection and accrued interest, better still. Ideally, you will recover it all, including your higher rate of accrued default interest. Recognize, however, that what is ideal may not be what is realistic. Once again, the guiding light is maximizing recovery. Sometimes making a profit is not an option. Minimizing loss may be the only viable strategy.
If you review borrower’s financial condition and determine borrower’s cash flow difficulties are temporary, instead of increasing payments to cover 12% default interest, consider whether it would make more sense to base payments on 4% and accrue the other 8% until borrower’s cash flow situation improves.
If you determine borrower’s cash flow difficulties are permanent and the best solution is to liquidate the collateral, consider whether you will recover more through a foreclosure sale or through sale as a going concern? What do you need to do to facilitate sale as a going concern? Who should run your borrower’s property or business in the meantime? Is the extra cost of appointing a receiver or trustee going to result in a greater recovery for you?
On numerous occasions I have dealt with lenders who insist on rigidly sticking to their original lending criteria. Frequently, the lender demands that the borrower raise more capital to cure borrower’s default and restore lender’s required loan ratios. This is a great solution for lender if it is possible. The question to ask is how realistic is it and will it really solve the underlying financial difficulties. If the borrower does not have its own funds to invest, where is the additional capital supposed to come from?
Recalling the maxim for capital attraction stated above, what rate of return will prospective investors require to induce them to inject more capital into the borrower’s already struggling enterprise? How will this high rate of return be realized? What impact will that have on borrower’s future prospects for loan compliance? In the long run, will this strategy improve or impair your chances for full recovery?
In Insulated Snowboard Jackets case, the lender’s mantra should be: maximize recovery; maximize recovery; maximize recovery. . . Every lender decision after default should be focused on this objective. The path to maximum recovery may not be obvious, and in some cases may seem counter-intuitive. Still, it must be your guiding light.
As we start down the path of considering a loan workout, it is essential that we obtain a clear and accurate picture of borrower’s true financial circumstances. If you are not sure about the quality of financial information we are getting from your borrower, consider requiring that borrower engage an independent financial consultant. The consultant should be professional and qualified. The consultant must understand that although he or she is being paid by the borrower, the consultant owes a fiduciary duty to accurately report to the lender.
Fortunately, there are a lot of qualified professional financial consultants. They are not cheap, but they are often worth the added expense. Be sure the one you pick knows your borrower’s business or can learn it very quickly. Require a strict and frequent reporting schedule. If you determine borrower’s financial situation is not going to improve, be ready to pull the plug and do what you have to do to maximize your recovery.
If the borrower won’t voluntarily agree to engage a financial consultant, go ahead and declare a default then require employment of a financial consultant as a condition to entry into a forbearance agreement. A forbearance agreement is a good idea in all events. It should include an acknowledgment of the loan default and a waiver of defenses as conditions to your agreeing to work with the borrower to try to find an amicable solution to borrower’s financial crisis.
While you gather information and work with the borrower, have an attorney review your loan file to make sure you have everything you need in the event you must resort to forced collection and foreclosure. It may Burton Snowboard Womens Sale you how often your documentation is incomplete or inaccurate. At a minimum, make sure your Note, Mortgage, Security Agreement and Guaranties are signed; that the Mortgage is recorded and your security interest is perfected.
What is the value of that personal guaranty now? Require current financial statements from the borrower and each guarantor. Determine whether the borrower has addition capital available or additional collateral to pledge to fully secure your loan. Make sure all necessary corporate resolutions and other authority documents are executed and in your loan file.
As you work with the borrower, you must always consider the risk that borrower may file bankruptcy. Understand the consequences.
Bankruptcy proceedings are often very expensive. For this reason, they may degrade rather than enhance your recovery, even as a secured lender. Perhaps to your surprise, being over-secured can create nearly as many problems in bankruptcy as being under-secured. The problems are not exactly the same, but each has its own challenges.
If your loan is under-secured, you will likely be treated as a general unsecured creditor for that portion exceeding the value of your collateral. To avoid this risk, it is not uncommon for some lenders to proceed to the opposite extreme of grossly over-securing their loans. This strategy, while in the long run preferable to being under-secured, is not without issues.
In cases where the borrower has significantly over-secured its loan, a bankruptcy judge has the authority to significantly reduce or suspend the borrower’s obligation to make current debt service payments by determining the lender is adequately protected by the value of its collateral. That can mean no payments whatsoever on your loan while the bankruptcy is pending. If the cash flow from loan repayment is important to lender, this could create a serious problem.
The point of all of this, for lenders, is that to maximize your loan recovery, you must exercise good business judgment. Blind adherence to conventional remedies for breach of contract may not be your best answer. Be creative and focus on what will maximize your recovery under the unique circumstances of this particular loan default with this particular collateral and this particular borrower.
While doing this, do it in a way that does not expose you to lender liability. At all times you must maintain your role as a lender acting responsibly to maximize your recovery. Avoid any action than may transform you into a role tantamount to that of a business partner. This is not difficult, but may sometimes require you to walk a fine line.
Taking a creative approach to loan defaults and focusing on ways to work with your borrower are often essential elements to minimizing loan losses and maximizing recovery. This is the essence of an effective loan workout.
R. Kymn Harp is a seasoned attorney and trusted adviser to commercial real estate investors, lenders, and developers. He is a partner in the Chicago, Illinois law firm of Robbins, Salomon & Patt, Ltd. and may be reached at (312) 456-0378 or rkharp@rsplaw.com For more information, visit his website http://www.realestate-law.com
