Why Hire Eagle Eye Review?

Entity Reviews and Title Reviews can, and often are, performed by internal staff at the bank, credit union, or private lenders’ office. So why would you hire Eagle Eye Review to perform this work for you instead of doing it in house? Here are a number of reasons:

1. 100% of Entity and Title Reviews are performed by an attorney. Other companies allow non-attorneys to perform these reviews. An attorney review provides assurance to investors purchasing the loan or to you that the review was performed correctly.
2. The Lender has an obligation to inquire as to the actual authority of those who will be signing on behalf of the entity. Anytime a third party deals with an agent without further inquiring as to the actual authority, they do so at their own peril. If no agency relationship exists or if the agent’s authority is exceeded, the sole recourse of a third party is against the agent. The principal is not bound. See Kern v. J.L. Barksdale Furniture Corp., 224 Va. 682, 685, 299 S.E.2d 365 (1983); see also Scotsman v. Crawford, 53 Va. Cir. 183 (Cir. Ct. 2000).
3. You need to know who has the authority to sign to bind the entity to all the terms, conditions, and obligations of your loan documents. Often, the public record formation documents differ from the internal entity formation documents. This discrepancy must be resolved properly to assure the lender and investors that the correct people signed on behalf of the entity.
4. Zach Wallin (Eagle Eye Review) has performed thousands of entity reviews for all entity types. He is an expert in knowing what to look for in the formation documents and in advising lenders as to what needs to be done to provide the most security for each transaction.
5. The cost is worth the benefit. The price for each review is small compared to the benefit received. Often the cost can be passed on to the entity borrower in the form of a closing cost. Entity borrowers are sophisticated enough to understand why a lender would need to perform an entity review and will not object to the additional fee.
6. Reduce your legal and business risk. Lending to entities comes with the added risk of not knowing who is truly authorized to bind the entity to the terms, conditions, and obligations of the loan. What do you do if there is a conflict between the Articles of Organization and the Operating Agreement as to who is authorized to act on behalf of the entity? What do you do if a certain individual is authorized to bind the entity, but only up to a certain dollar amount? What do you do if the formation documents specifically state that a particular officer must sign to bind the entity? All of these scenarios, and more, create a risk for the lender. What is the risk? The risk is an inability to pursue remedies (such as acceleration or foreclosure) because a person who was required to sign for the entity did not.
7. Zach Wallin has a unique skill set as a result of spending over 5 years at GoDocs. During that time, Zach acquired a deep understanding of commercial loan documents, including the Loan Agreement, the Note, the Deed of Trust/Mortgage, the Guaranty, and other ancillary documents. When analyzing an entity’s formation documents or a title report, Zach understands on a deeper level how certain clauses in a document may affect the loan documents. Zach can advise as to specific actions you may wish to take to protect yourself better in a specific transaction.