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.   

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.

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.

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.

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.

At present, it appears that the Colorado Division of Real Estate is not prepared to implement the registration process; however, the Division is in the process of updating its system to provide for online registration of HOAs.  When its system is ready, we expect HOAs will be given a grace period to register before any action to revoke their rights is taken.

            There is, however, a deadline that is definitely sooner than later.  All small tax-exempt organizations that have not properly filed tax forms in 2007, 2008, and 2009 are at  risk of losing their tax exempt status unless they file by October 15, 2010.  There are hundreds of thousands of these organizations throughout the country, and hundreds in Colorado.  There is a list of the organizations on the IRS home page at www.irs.gov .  

            The IRS has tried to get the word out on this issue.  The Service has an informative article on its web page and it has released a YouTube video.  IRS Commissioner Doug Shuman stated, “We are doing everything we can to help organizations comply with the law and keep their valuable tax exemptions.”  The smallest charities only need to file a 990-N online.  Larger charities need more extensive filings. The forms are on the IRS web page.  Failure to file will result in the tax exempt status being lost. A list of organizations that lose their exemptions will be posted by the IRS.

While the new statute does not invalidate Living Wills made before its passage, many individuals may want to replace their old Living Wills with the new form in order to maximize their opportunities to direct medical treatment and to relieve their loved ones from responsibility for making these emotionally charged, life changing decisions.

For more information about the Federal whistle-blower program, go to irs.gov and look for IRS Form 211.