Pub. 8 2013-2014 Issue 2

www.nebankers.org 16 Extraordinary Service for Extraordinary Members.  Negotiability — continued Team McGladrey Golfer Zach Johnson and his caddie, Damon Green. A strong strategic partner should know you and your organization well enough to know when to step up with insights, suggestions and fresh ideas. And when you trust the advice you’re getting, you know your next move is the right move. This is the power of being understood. This is McGladrey. Experience the power. Call Jim Richardson or Andrew Guill at 402.344.6100 or email: jim.richardson@mcgladrey.com or andrew.guill@mcgladrey.com . Lots of advisors suit up, show up and keep up. But how many know when to speak up? © 2012 McGladrey LLP. All Rights Reserved. Power comes from being understood. SM owner. Put the person who receives the money directly on the dotted line across from the lender that actually provides the funds. When the feedlot was brought into the relationship as essentially a straw man, the bank created more problems than it solved. Assignments. Remember, whenever you make an as- signment, you make an ass out of I and Gnment—okay, that doesn’t work. Remember this instead, if you must take a note on assignment, immediately provide the debtor with an authenticated notice of assignment. Immediately. That same day. Do not forget. Do not wait. The notice of assignment is “a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee.” “Authentica- tion” in this circumstance is generally satisfied by sending the notice of assignment on the bank’s letterhead or on a form on which the bank’s name appears. Hindsight Is 20/20 It really is true that an ounce of commonsense is worth a pound of cure. The bank could have required that the feedlot inform packers that all checks for cattle proceeds should be made payable jointly to the feedlot and the bank up to the amount of the note related to that lot of cattle. In that case, The co-authors of this article are Gene Summerlin (who co-authored Parts I and II of this series) and Allan Williams of Husch Blackwell LLP. Summerlin is a partner in Husch Blackwell’s Food and Agribusiness Industry group, where he concentrates his practice on civil litigation. In addition to serving as counsel inmultiple litigationmatters involving agricultural clients, Summerlin is general counsel for cattle breeding and crop associations. You may contact him at (402) 964-5014 or gene.summerlin@ huschblackwell.com. Williams (pictured in the Husch Blackwell advertisement on page 3) concentrates his practice on corporate transactions and provides support to Husch Blackwell’s Corporate, Mergers and Acquisitions, and Securities Practice Specialty Center. Youmay contact himat (402) 964-5221 or allan.williams@ huschblackwell.com. before sending cattle to the packer, the feedlot would have to call the bank to get the current amount of the note on the cattle being shipped. The bank would know that a particular lot of cattle had been shipped and would know that payment on the note would be forthcoming. Even more importantly, when the packer check arrived, the bank could endorse the check and apply the proceeds to the correct note. In the case we have been discussing, this requirement was included in the assignments, but both the bank and the feedlot decided that this was too much trouble. I am fairly certain they would rethink that decision today. The easiest path is not always the smoothest road in the long run. 