TRADENAMES AND DBAs

            A trade name or DBA (“doing business as”) is a name other than the true name of the entity under which it is authorized to do business in Colorado.  So, for example, if Colorado Enterprises, LLC opens a pizza shop named Rossi’s Pizza, “Rossi’s Pizza” is Colorado Enterprises, LLC’s trade name.  If the trade name is anything other than owner’s true name, Colorado law requires that Statement of Trade Name be filed with the Colorado Secretary of State’s office.  

            A Statement of Trade Name allows the public to identify the real owner of a business when the business name does not identify its owner.  Without an effective Statement of Trade Name, an entity cannot maintain a court proceeding for the collection of debts and may also subject the ownership entity to monetary penalties or an injunction from continuing to transact business.  

            Filing a Statement of Trade Name does keep any other company from filing a Statement of Trade Name and using the same name or otherwise protect the business name.  There may be Rossi’s Pizza shops up and down the same street, all with different owners; however, by investigating the on-line records of the Colorado Secretary of State at www.sos.state.co.us and matching the specific business name with its address, the identity of the actual owner is easily obtained.   

Ordered to Mediate?

If you are in the process of a divorce or other litigation you may be subject to a COURT ORDER TO MEDIATE.  What is the impact of this order?  Will you be required to settle all your issues?  Will you be denied your day in court?  This article addresses a few misconceptions and opportunities presented by a court order to mediate.

1. THE MEDIATOR OR MEDIATORS DO NOT DECIDE YOUR ISSUES. 

Participation in the mediation process is voluntary, and intended to help you resolve your issues, but not intended to dictate resolutions to you.  If, after mediation, you and the other party are unable to reach agreements acceptable to both of you, you still may ask the court to decide your case at a hearing.

2. MEDIATION IS MORE THAN AN ADDED EXPENSE, IT IS ALSO AN OPPORTUNITY TO SAVE MONEY.

Most mediation sessions are charged to you at an hourly rate of between $60 and $150 per person per hour.  Some mediation services are available free of charge for low income participants in community programs, such as in the program at Jefferson County Mediation Services.  Because mediation provides you with an opportunity to resolve issues, it can save thousands of dollars in legal fees.  Every issue you resolve should simplify any upcoming hearing and therefore reduce your overall cost.  If you are able to resolve all issues, you will not need to have a court hearing.

3. MEDIATION INCREASES OPPORTUNITIES TO SETTLE, AND DOES NOT ELIMINATE POSITIONS YOU MAY TAKE IN COURT.

Because mediation is confidential, and the conversations held are not disclosed in court, mediation presents you with an opportunity to discuss matters freely, and to brainstorm solutions to your issues.  If the conversations and brainstorming do not result in resolution, you can still go back to "square one" in presenting your issues in court.

These are just a few issues frequently raised about mediation.  It is worth remembering as well that you do not have to be ordered to mediate in order to use mediation to help resolve your case.  You can find mediators through community programs; through the Colorado Council of Mediators, now known as the Mediation Association of Colorado, or theMAC; through the Colorado Judicial Department's Office of Dispute Resolution; and through searches on the internet or in QwestDex.  As with any professional service, it is helpful to have a personal referral from someone who has had a good experience with a professional in the field.  If you do not have a personal referral, you can do your own research by contacting mediators and interviewing them about their background, procedures, costs and approach.  My name is June E. Anglin, I am a mediator, and I would be glad to help you with services or with information about services in this field.

Beware: Corporate Periodic Reporting Scam

There is a new scam circulating via fax and email transmission which states that corporate shareholders and directors will face personal liability if a periodic report is not filed with the Colorado Secretary of State's office on or before April 15, 2011.  The company claims that for $225.00 it will assist your company in filing the documents.  What it does not tell you is that the filing fee is only $10.00 in most cases and that you can file it yourself on the Colorado Secretary of State's website.

Filing an annual report is only part of what every Colorado corporation or limited liability company should be doing to preserve the benefits of the business entity.  At Toussaint, Nemer & Coaty, P.C., we keep you in compliance with all required filings, keep your corporate book up to date with minutes and stock/membership transaction records, and provide an annual letter summarizing new laws and cases that may affect the way you do business.  It's all part of our corporate compliance program.  If you've delayed in reporting in the past and need to get back into good standing, we can help you with that too.  Please call our office for more information about our corporate compliance program or any other legal issue.

Reverse Mortages: Now there are two varieties

Reverse Mortgages have become popular with people who want to cash out some of their equity for living expenses, medical expenses, or other long term expenses.  Owners over the age of 62 with sufficient home equity may qualify for a reverse mortgage.  The advantage for many is that monthly loan payments are not required.  Instead the principal and interest come due when the residence is sold or when the borrower moves or dies.  In the meantime, the owner has had the use of the property's equity in funds taken in monthly payments, a lump sum, or a line of credit.

There are now two types of Reverse Mortgages: the Standard and the Saver.  The Standard has been around for some years while the Saver was introduced in 2010.  Both have upsides and both have drawbacks.

The Standard Reverse Mortgage allows you to borrow more of your equity than a Saver Reverse Mortgage but it comes with a price, namely a Federal Housing Administration premium of up to 2% of the value of the residence charged to protect against losses on these loans, along with other upfront fees due at closing.  All together, these fees can add up to 4%-5% of the value of your home, which means these loans are generally only appropriate for borrowers who believe they will be able to stay in their homes for a considerable period of time.

The FHA has cut the insurance premium to .01% for Saver Reverse Mortgages, and some lenders are promoting Saver Reverse Mortgages by reducing other upfront fees.  However, these up-front savings come with costs over the life of the loans.  First the interest rate may be slightly higher for a Saver.  Also the amount that can be borrowed is 10% to 20% less than what a person can borrow through a Standard Reverse Mortgage.  Some lenders also limit the ways the equity can be paid under a Saver to the lump sum distribution only.

These mortgage products are quite sophisticated.  You should research them carefully prior to committing and obtain professional advice to answer any questions you may have.  If you are interested in a Reverse Mortgage the professionals at Toussaint, Nemer and Coaty can assist you in your research.  In addition, you should contact a reverse-mortgage counselor who is approved by the federal government.  Go to www.hud.gov or let our office assist with finding such a counselor.  We can also recommend lenders with expertise in this field.

Mortgage Difficulties

Mortgages are in the news constantly and with good reason.  Many families need some sort of relief from time to time.  If you are having difficulty with your current mortgage or HELOC, we suggest you take steps to work out any problems as soon as they appear.  Besides calling one of the experienced lawyers at TNC, there are many other resources available. 

The best place to start is an officer at the lending institution that holds the mortgage.  Holders of mortgages in Colorado are required to have loss mitigation personnel.  You can also call the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673).

New mortgages and "Re-Fi's" can raise many legal and financial issues.  Again, the professionals at TNC can advise you about Promissory Notes, Deeds of Trust, land use, zoning, water and mineral rights, title disputes and easements, to name just a few of the issues that can arise.  The term of the loan, the "closing costs", the APR, the security being encumbered, are all subjects a borrower needs to understand when creating a mortgage.

Reverse Mortgages are becoming much more popular.  Watch for our next blog about the two types of Reverse Mortgages.