__MAIN_TEXT__
feature-image

Page 169

COMMENT GOLF-COURSE GREENS FEES: LICENSE FEES OR LAND INCOME? PETER J. MANCINI* ABSTRACT This Comment explains the current treatment of golf-course-greens fees by courts and creditors. This Comment calls for a change in their treatment, especially in bankruptcy court, which will change how creditors document their loans. This Comment argues that the current treatment of golf-course-greens fees should no longer be treated as just personal property because the past rationale used to support this is no longer valid. Thus, treatment of these fees must be modernized. Why is this so important? Without loans made by creditors, new golf courses will not be built and existing golf courses will not be bought or sold because, for golf-course creditors, millions of dollars are often at risk. And if the risks of default and loss are too great, creditors will tighten credit standards significantly, reduce loans made to businesses within this industry, or exit this industry altogether. To avoid this, this Comment calls for a paradigm shift. Golf-course-greens fees should no longer be treated solely as personal property. Rather, depending upon circumstances and intent, they should be characterized and treated differently. This, then, would require different means of lien perfection based on a simple, commonsense analysis. Put simply, it is time for a change.

* The author is a graduate of the Graduate School of Banking at the University of Wisconsin and holds a Master in Business Administration from Eastern Michigan University. Between 1998 and 2014, he held commercial lending positions with several Midwest banks and credit unions. From 2010 to 2014, he also managed collections departments in two Michigan credit unions. Mr. Mancini would like to thank Prof. Stacy Dinser who edited this Comment originally and a second thank you to his wife, Marianne, his children, Zachary and Chloe, and his parents for providing support while he was writing this Comment. Without their help, he could not have done this.

Profile for WMU Cooley Law School

Western Michigan University Thomas M. Cooley Law Review - Volume 34 | 2017 | Fall Issue  

Western Michigan University Thomas M. Cooley Law Review - Volume 34 | 2017 | Fall Issue

Western Michigan University Thomas M. Cooley Law Review - Volume 34 | 2017 | Fall Issue  

Western Michigan University Thomas M. Cooley Law Review - Volume 34 | 2017 | Fall Issue