<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Consolas;
panose-1:2 11 6 9 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
pre
{mso-style-priority:99;
mso-style-link:"HTML Preformatted Char";
margin:0in;
margin-bottom:.0001pt;
font-size:10.0pt;
font-family:"Courier New";}
span.HTMLPreformattedChar
{mso-style-name:"HTML Preformatted Char";
mso-style-priority:99;
mso-style-link:"HTML Preformatted";
font-family:Consolas;}
span.EmailStyle21
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-size:14.0pt">The land remains encumbered in whatever priority it was in under the old LLC (assuming proper recording, execution, etc.). The new LLC should assume the obligations of the old LLC, the DOT should be amended
to change the name of the borrower and any guarantor of the old LLC should sign a new guaranty for the obligations of the new LLC. If the lender has title insurance, an endorsement should be obtained on the policy to ensure proper vesting and no loss of
priority based on the DOT modification. If the lender doesn't have title insurance, you may want to inquire with your local title insurance company whether they would be willing to insure at this time.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">It is likely an event of default under the DOT/Note for the title to transfer and the old entity to dissolve. I recommend against ignoring the EOD.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Good luck. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt">Jody<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt"><o:p> </o:p></span></p>
<p style="FONT-SIZE: 10pt; FONT-FAMILY: ARIAL"><strong>Jody M. McCormick</strong><br>
Principal | Witherspoon • Kelley<br>
<a href="mailto:jmm@witherspoonkelley.com">jmm@witherspoonkelley.com</a> | <a title="Attorney Profile" href="http://www.witherspoonkelley.com/jody-mccormick">
Attorney Profile </a>| <a href="http://www.witherspoonkelley.com/s/jmm-wk.vcf">vCard</a></p>
<p style="FONT-SIZE: 10pt; FONT-FAMILY: ARIAL">
<table style="WIDTH: 375px; MARGIN: 0px" cellspacing="0" cellpadding="0" border="0">
<tbody>
<tr>
<td style="FONT-SIZE: 10pt; HEIGHT: 25px; FONT-FAMILY: Arial; WIDTH: 116px; PADDING-BOTTOM: 10px; PADDING-TOP: 10px; PADDING-LEFT: 10px; PADDING-RIGHT: 10px; BACKGROUND-COLOR: #17365d" valign="top">
<img border="0" alt="WK" src="cid:WK-Email-Logo_c39ae46e-8f64-41c9-b47d-7d62d54d7f68.png"></td>
<td style="FONT-SIZE: 10pt; HEIGHT: 25px; FONT-FAMILY: Arial; WIDTH: 258px; PADDING-BOTTOM: 10px; PADDING-TOP: 10px; PADDING-LEFT: 10px; PADDING-RIGHT: 10px; BACKGROUND-COLOR: #17365d" valign="middle" align="center">
<p style="FONT-SIZE: 10pt; FONT-FAMILY: Arial" align="right"><font color="#ffffff">422 W. Riverside Ave, Ste 1100<br>
Spokane, WA 99201<br>
(509) 624-5265 (office)<br>
(509) 755-2007 (direct)<br>
witherspoonkelley.com</font></p>
</td>
</tr>
</tbody>
</table>
<font color="#828282"><span style="FONT-SIZE: 8pt"><br>
<em>Confidentiality Notice: The information contained in this email and any accompanying attachment(s) is intended only for the use of the intended recipient and may be confidential and/or privileged. If any reader of this communication is not the intended
recipient, unauthorized use, disclosure or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return email, and delete the original message and all copies from your
system. Thank you.</em></span></font></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> Sunday, August 2, 2020 10:25 AM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] DOT/Promissory Note<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p>One other issue. If the old LLC has a judgment or lien against it, which may be likely since it's defunct, by going to a new DOT you'd move junior to that other interest.<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
<div>
<p class="MsoNormal">On 8/2/2020 10:13 AM, Kary Krismer wrote:<o:p></o:p></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p>I cannot see why your seller would not still be secured or need to do anything as long as payments are being made referencing the debt. If the DOT was valid when granted it seemingly would remain valid. The only possible concern I see is statute of limitations,
but I'm not even seeing that as an issue assuming I remember the law right on when the SOL starts to run on monthly payments (perhaps a big assumption).<o:p></o:p></p>
<p>As an analogy, if the grantor of the DOT was an individual and died, you wouldn't need to get a new DOT from the heirs. Or if the old LLC had conveyed to another person/entity, you wouldn't need a new DOT from them.<o:p></o:p></p>
<p>And in any case, the new LLC probably would not be the grantor of a new DOT, at least not until they can claim by adverse possession or some such thing. They seemingly are not in the chain of title at all. Wouldn't the members of the old LLC be the current
owners?<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
<div>
<p class="MsoNormal">On 8/2/2020 9:32 AM, Kristina Driessen wrote:<o:p></o:p></p>
</div>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black">I have a client [LLC] who sold to an other LLC with personal guarantee back in 2006. This was accomplished via DOT/promissory note with my client being the bank.
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black">It just came seller’s attention that the buyer LLC was dissolved in 2008. He opened a new LLC and has been paying every since. My client has been sending the tax
info to buyer in the name of the old LLC since 2006.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black">Fast forward to today. Client obviously wants to secure his interest. What is the fastest way to do this…….Reconvey the original DOT/promissory note, and start
over or can an assignment with seller consent accomplish the same thing?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black">Looking for the best practice and/or the expedite way to accomplish the same and your experts thoughts.
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black">Thanks in advance</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><i><span style="font-size:10.0pt">Kristina A. Driessen</span></i><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">“A” Street Legal Services, Inc. P.S</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Attorneys at Law</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">16 A Street SE</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">Auburn, WA. 98002</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">(253) 939-0811</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">(253) 939-0471 fax</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt">astreetlegalservices.com</span><o:p></o:p></p>
<p class="MsoNormal"><u><span style="font-size:10.0pt"><a href="mailto:kristina@rdattys.comcastbiz.net">kristina@rdattys.comcastbiz.net</a></span></u><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:9.0pt;color:black">CONFIDENTIALITY NOTICE</span></b><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:9.0pt;color:black">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney/client
privilege, work product doctrine or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution or copying of this communication
is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at 253.939.0811 that you have received the message in error, and then delete it. Thank you.</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:9.0pt;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif;color:black"> </span><o:p></o:p></p>
<p class="MsoNormal"><br>
<br>
<o:p></o:p></p>
<pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
<pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre>
<pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre>
</blockquote>
<p class="MsoNormal"><br>
<br>
<o:p></o:p></p>
<pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
<pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre>
<pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre>
</blockquote>
</div>
</body>
</html>