How To, And How Not To, Foreclose On Oil And Gas Equipment

In an article authored by Law360, Faegre Baker Daniels attorneys Joe DiRago and Matthew Clark explain the recent Federal Reserve release of the results of its April 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices.

The survey specifically asked about lending to firms in the oil and natural gas drilling and extraction sector. DiRago and Clark explain that the picture painted by respondents is hardly surprising: “More than half of the banks who made loans to this sector expected loan quality to deteriorate somewhat over the remainder of 2015.” In other words, lenders expect that some oil and gas borrowers will default on their repayment obligations. This will leave lenders searching for ways to mitigate their losses on these loans.