WEBINAR

Contingent Liabilities: Three Lines of Defense for Lenders Webinar

CFT Credits: 0.25

This program starts with reviewing the various types of contingent liabilities and why they are important. We then look at three “lines of defense” for determining and assessing contingent liabilities.

Webinar Description and Intended Audience

Determining and assessing a borrower’s contingent liabilities is an important step in the lending process, and one that many bankers do not fully understand. This webinar reviews the various types of contingent liabilities and the three lines of defense.

A contingent liability is a potential liability…it depends on a future event occurring or not occurring. Bankers must fully vet the adverse consequences of contingent liabilities to the financial condition of a borrower/guarantor/owner because of the risks of a potential problem loan and/or diminished support for a borrowing business or real estate project/property.

This program starts with reviewing the various types of contingent liabilities and why they are important. We then look at three “lines of defense” for determining and assessing contingent liabilities.

Lines of Defense:

Full disclosure – including simple things like personal financial statement formats and other financial documents that contain clues to other contingent liabilities.

Developing a secondary or realistic liability which can emerge in the short term – going beyond the face amount of the guarantee (or other item), including:

  • Understanding the full guarantee structure (guarantee percentage vs. ownership percentage).
  • Underlying cash flow and debt service coverage (DSC) of company or project/property as indicator of potential payment default, then any related collateral and/or reserves.
  • This section provides an assessment example using real estate projects.

Understanding all related parties and the business balance sheet items among the parties

  • Various current receivables
  • Long-term or due from owners and how they arise
  • Other amounts due to owners (liabilities) and various levels or types of subordinated debt or liabilities
  • This section includes examples from financial statements and tax returns, plus issues with corporate “off balance sheet” items such as standby letters of credit and corporate guarantees.

Who Should Attend?

Commercial and business lenders, community bank lenders, private bankers, credit analysts and portfolio managers, credit officers, loan review specialists and others involved in the consumer and commercial lending process.

Webinar Viewing Options

LIVE WEBINAR:                                              

INCLUDES 7 DAYS OF UNLIMITED ONDEMAND PLAYBACK!  With this option, you will participate in the webinar live, via the internet. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. You can type and send your questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate at the same time.  And don’t worry if you miss the webinar, you can still view it for up to seven days after it takes place!

SIX MONTH ONDEMAND VIDEO:

With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it a very effective training tool. The OnDemand Video will be available to you (and anyone else in the company) for six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.

CD-ROM VIDEO:

If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool.  With this option, you will receive a download of any applicable handouts and a CD-ROM (featuring the full-color PowerPoint presentation with audio) via regular mail. Mailed 7 to 10 days after the webinar takes place.

IN-HOUSE:                                                        

Webinars can be scheduled and offered exclusively for your company.  They can even be customized to best fit your needs.  To find out more, please complete the in-house request form found in the Schedule and Registration Information section below.

Continuing Education (CE) Credits

This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.

Register Here!

Choose the viewing option that best suits your needs. Live Webinar times are shown as Eastern Time. You can choose to pay by credit card or invoice when you register. CFT Credit will be awarded to the registrant, unless directed otherwise (additional attendees can also receive credit for an additional fee). CFT Webinars are powered by Total Training Solutions!

Webinar DateStart TimeEnd DateEnd TimeViewing Options - See Descriptions AbovePrice
10/30/17Archived Six Month On-Demand Recording$295.00Order
10/30/17Archived CD-ROM Video Recording$345.00Order
AnyIn-HouseRequest