Independent Directors, Independent Managers & Springing Members
Ensure that your ownership structure satisfies a critical lender requirement — and check a key item off your closing checklist.
Billions of dollars in loan transactions — in the last 12 months alone
Recent closings
$153,750,000
New Jersey office building (Bank of Montreal)
$127,000,000
Multifamily property in Northern Virginia (KKR)
$33,500,000
Hotel in Norfolk, VA (Wells Fargo)
$154,000,000
Multifamily property in Long Island (MSD)
What is an Independent Director?
The primary responsibility of the Independent Director is to grant approval for specific material actions on behalf of the Borrower. For instance, should the Borrower consider filing for bankruptcy, the Independent Director is tasked with providing requisite consent.
What is a Springing Member?
For instance, in the event the member of an LLC dissolves, whether as a result of bankruptcy or otherwise, the Springing Member would emerge to ensure the LLC remains a viable and effective LLC under applicable State law.
Why is an Independent Director or Springing Member Required?
How does DBO help?
Our members are qualified, experienced — and accessible
Our appointees have more than a decade of experience serving in this capacity, and have worked with lenders & law firms across the country.
Our members are readily available and on standby — including nights and weekends — to ensure your deal closes without unnecessary delay.
Our Independent Directors can also serve as Springing Members when required — and this service is provided at no extra fee.
The DBO Guarantee:
Competitive rates, always
Independent Director or Springing Member
Includes:
Two pricing options:
Contact us for exact pricing
Substantial discounts for deals involving 5+ entities.
Paid at loan origination, per entity
Best for long-term loans, or entities that require multiple Independent Directors
Paid annually, per entity
Best for short-term loans, or entities that require only one Independent Director
Not sure which option is best for you? Reach out — we'll be happy to discuss.
Frequently asked questions
No. There are specific criteria that must be satisfied for someone to serve as Independent Director.
Loans as low as $10M may come with this requirement — but it’s more typically required for loans of $15M or more.
CMBS loans and securitized loans typically have this requirement. That said, it’s occasionally required in connection with other loans too.
Your lender will generally let you know about this requirement upfront — or include it as part of a loan closing checklist. If you’re not sure whether this will be required for an upcoming loan, feel free to reach out here and we’ll advise.
This depends on your preferred payment structure, and the number of entities involved.
Will I need to pay two separate fees?
No. If both an Independent Director and Springing Member are required, our Independent Directors serve as Springing Members at no extra charge. This is a complimentary bonus that DBO provides to our valued clients.
As quickly as 24 hours if needed, though we advise clients to contact us at least a week before closing.
Not involved at all. Their role is limited to consenting to a set number of bankruptcy-related material actions associated with the company, its subsidiaries, or affiliates.
.svg)