Seminar Committee Members Chair Paul Silverman, Geltmore Inc. Anne Browne, Sutin, Thayer & Browne PC Drew Dolan, Titan Development Ltd. Company John Lewinger, Grubb & Ellis|New Mexico Allen Lewis, United Enterprises, Inc. James Trujillo, REDW The Rogoff Firm
Energy Efficiency at PNM Sue Fullen, VP, Marketing and Customer Service
Drivers forEnergy Efficiency • 23 States have mandated utilities to achieve cost-effective energy efficiency • New Mexico passed a law in 2005 requiring utilities to achieve reduction of 2005 energy retail sales • In 2007 PNM Launched its first energy efficiency programs • Aggressive efficiency targets were set in the 2008 Integrated Resource Plan for PNM • Customers are asking utilities to find ways to help them lower their bills • Utilities are making energy efficiency a part of their energy supply portfolio • Protects the environment • Delays construction of new energy resources • Environmental stakeholders are very active in lobbying for energy efficiency
Residential Programs • In-Store Home Lighting Discounts • Refrigerator Recycling Rebates • Compact Fluorescent Light (CFL) Distribution • Low-Income CFL and Fridge Replacement • Low-Income Easy Savings Kits • PNM Power Saver – Demand Response • Market Transformation
Business Programs • New Construction Rebates • Retrofit Rebates • PNM Quick Saver – Small Business • Refrigerator Recycling • PNM Peak Saver – Demand Response • PNM Power Saver – Demand Response • Energy Star Homes – Builder Rebates
Program Performance Since 2007 • Energy Efficiency Measures Taken by PNM Customers • Equivalent to energy consumed annually by 12,000 homes • Reduced carbon dioxide emissions by estimated 60,000 tons per year • Equivalent to taking 10,480 cars off the road for one year • Created at least 30 green jobs in New Mexico
2010/2011 Targets Targets Determined by the 2008 Integrated Resource Plan Long term EE goals based on EE Act mandates and “Potential Study” estimate of “maximum achievable” (Itron Consulting)
Customer Benefits • 2009 • PNM spent $4.5 million in incentives • 150 businesses participated • 2010 • $6 million in incentives projected, including $2 million in commercial rebates • 200 participants expected in program for large businesses • PNM Quick Saver small business program launched
More Information pnm.com/rebates 1-888-DIALPNM 1-888-342-5766
Panel 1:How to Find Food & Water (i.e. Deals) Martin Bronstein, Chairman The Situs Companies & Lead Guide
Panel 1:How to Find Food & Water (i.e. Deals) Andrew Simons, Shareholder Sutin, Thayer & Browne, PC
Foreclosure • Comply with requirements of mortgage agreements. • E.g. notice of default and demand for cure. • Residential mortgages. • Notice of default and right to cure, and at least 30 days to cure default, required. NMSA 1978, § 52-21A-6 (2009). • Limits on fees, e.g. only $100 for pre-suit attorney fees. Id.
Foreclosure • General foreclosure process: • Obtain title search. • Draft complaint—sue all lienholders, in addition to borrower. • File suit & record lispendens. • Update title search through date of l.p. recording. • If necessary, amend to add late-recorded lienholders. • Normal lawsuit timeline.
Foreclosure • … General foreclosure process … • Normal lawsuit timeline: • Serve complaint, summons, etc. on defendants (1 – 30 days). • Defendants then have 30 days to answer. • If no answer filed, move for default judgment. • If answer filed, move for summary judgment (30 days). • If discovery required, 75 days. • Defendants can respond with motion to dismiss, can assert counterclaims in answer.
Foreclosure • … General foreclosure process … • Enter judgment. • Foreclosure of client’s interest and all other interests in property. • Money judgment in amount of debt. • Sale of property to satisfy money judgment. • Discretion to credit bid all or part of money judgment at sale. • Judgment for any deficiency amount after sale.
Foreclosure • Pre-judgment judicial remedies. • Assignment of rents. • Generally provided for in documents. • Can use “self-help”, but risky. • Can doom the borrower, which can be good or bad. • Source of debt-pay-down for lender. • Receivership. • Receivership Act. NMSA 1978, §§ 44-8-1 et seq. (1995).
Foreclosure • … Pre-judgment judicial remedies ... • … Receivership ... • Lender entitled to receiver if documents provide for one. Section 44-8-4(A) (“district court shall appoint a receiver … where … written agreement provides for the appointment of a receiver.”). • Takes control of property away from borrower, which again can be good or bad. • Receiver technically neutral, but usually chosen by lender.
Foreclosure • Sale • Advertise (case caption; judgment date; place, date, time of sale; special master contact information; property description; simple property address; etc.) once/week for 4 consecutive weeks in paper of gen’lcirc’n in county where property located. NMSA 1978, § 14-11-10 (1931); NMSA 1978, § 14-11-12 (1891); NMSA 1978, § 14-11-10.1 (1987); NMSA 1978, § 39-5-1 (1895); NMSA 1978, § 39-5-1 (1887).
Foreclosure • …Sale… • At least 30 days after entry of judgment. NMSA 1978, § 39-5-17 (1931). • At least 3 days after last publication of notice. NMSA 1978, § 14-11-10 (1931). • Coordinate w/special master; provide announcements. • File affidavit of publication. NMSA 1978, § 14-11-5 & -6 (1931).
Foreclosure • File special master’s sale report, move for approval of same and for sale confirmation. Rule 1-053(E) NMRA. • Obtain order approving report, confirming sale, directing special master’s deed to buyer at sale. See Rule 1-053 NMRA. • No sale confirmation rule/statute, but req’d. • Redemption. NMSA 1978, § 39-5-18 (1931); NMSA 1978, § 39-5-19 (1957).
Foreclosure • …Redemption… • Generally 9 months, but can be shortened to 1 month by agreement. Id. • Shortened one-month period applies to junior lienholders even though not parties to agreement. Sun Country Savings v. McDowell, 108 N.M. 528, 775 P.2d 730 (1989). • Special rights: N.M. has 9 months, NMSA 1978, § 42-6-14 (1947); U.S. has a year, 28 U.S.C. § 2410. • Former owner, junior mortgagor/lienholder even if party to suit. Section 39-5-18.
Foreclosure • …Redemption… • Pay to purchaser: • the sale amount plus 10% interest. • all taxes, interest, and penalties thereon plus 10% interest. • all post-sale payments to satisfy prior liens not foreclosed plus 10% interest. • Or deposit above amount with Court and file petition. Section 39-5-18(A)(1) – (2). • Priority of competing redeemers. Section 39-5-18(A)(3)
Foreclosure • Pre-foreclosure sale to third party. • Until foreclosure sale, borrower, not lender, is owner. • Depending on involvement/control of borrower, may need to negotiate with borrower or lender. • But lender must be kept informed and in end must approve. • Start with the lawyers, but don’t let them get in the way. • Don’t assume there will be a fire sale. • Price driven by appraisal, concern about Court approval • Lender can’t jack up deficiency • Lender wants value, just like any other seller. • Lender not necessarily in a big rush to sell. • Lender has imperatives other than the market: regulators, internal policies, position in the food chain. • Make serious offers – don’t waste time.
Foreclosure • … Pre-foreclosure sale to third party ... • If receiver appointed, start there. • Nuts & bolts not too different from any deal. • Unless you have a boatload of cash, or just want to see what happens, don’t bother attending the foreclosure sale. • Lender likely to buy at foreclosure sale, and can always buy from lender then.
Panel 1:How to Find Food & Water (i.e. Deals) Scott Edwards, Edwards & Associates, LLC
Current Credit Environment • Lending money successfully requires lenders to predict the future.
Current Credit Environment • Historical perspective • Economic cycles • The economy made deals easier
Current Credit Environment • The beginning of the change in environment • CRE guidance from the banking regulators • Economic downturn
Current Credit Environment • Regulatory pressure and the need for increased scrutiny • Market conditions • Contingent debt • Global cash flow • Future cash flow, current liquidity and/or access to capital
Panel 2:How to Build a Shelter(I.E. Due Diligence) Martin Bronstein, Chairman The Situs Companies & Lead Guide
Panel 2:How to Build a Shelter(I.E. Due Diligence) Catherine Goldberg, Director Rodey Law Firm
Panel 2:How to Build a Shelter(I.E. Due Diligence) Ben Darwin, Principal Meyners + Company