Did you know the potential abuses of granting a power of attorney?

A power of attorney is a legal arrangement that allows you to turn over control of their finances, other business matters or personal issues to family members or friends and is emerging as a possible avenue for committing fraud.

Consider what you can do to make sure your power of attorney doesn’t create opportunity for strife or issues with financial institutions?

Above all, do it while you are healthy and in full control of your faculties. You have to be comfortable with and trust the person to whom you’re giving the power of attorney. You need to decide whether the powers you authorize are to be specific or narrow or general and broad, make sure you trust the person you’re granting them to and understand when these powers take effect.”

Do you know if you can make a required capital call?

If you’re the majority member of a Florida or New York limited liability company (LLC) and need more capital for your business, and either you have no written operating agreement (in Florida oral operating agreements are difficult to prove as to terms and substance), or you have one but it’s silent on the issue, You cannot make a compulsory capital call.

Without an operating agreement, or without an express provision for it an agreement expressly authorizing a call for additional capital contributions, that is the critical point, additional to the original capital contribution called for, and specifying the consequences of failing to make the contribution, you cannot make a compulsory capital call.

Sidney Turner

www.SidneyTurnerllc.com

Some homeowners in the struggling economy who have found that falling real estate prices have brought the value of their homes lower than the mortgage debt that they owe on their property, known as “underwater” mortgages, have responded to this unusual situation by simply trying to cancel their mortgages and move into more affordable homes.

Many of the debtors who choose to default on home mortgages don’t seem to consider or even realize many of the consequences of this action, especially that they are still responsible for paying the balance of their mortgage even in cases of default and that they cannot simply walk away from their obligations. They are liable to legal action from their creditors if they do not make their payments while actually having fewer legal options than some other debtors.

The threat of legal action is only one of several possible ramifications debtors face for voluntarily defaulting on a mortgage; other adverse affects include ruining their credit and facing the possibility of being forced into filing for bankruptcy to escape their obligations. If you would like to learn more about the issues related to “underwater” mortgages and homeowner’s options please refer to http://online.wsj.com/article/SB125902556993561567.html and if you have any questions or want additional information please visit us at Sidney Turner, LLC.