TCF Bank 2015 Annual Report Download - page 29

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14
Significant legal actions could subject TCF to substantial uninsured liabilities.
TCF can be subject to claims and legal actions related to its operations. These claims and legal actions, including
supervisory or enforcement actions by TCF's regulators and other government authorities or private litigation, could
result in large monetary awards or penalties, as well as significant defense costs. While TCF maintains insurance
coverage in amounts and with deductibles that it believes are appropriate for its operations, such insurance does not
cover all types of liability, and may not continue to be available to TCF at a reasonable cost, or at all. As a result, TCF
may be exposed to substantial uninsured liabilities, which could have a material adverse effect on TCF's financial
condition and results of operations.
In addition, customers may make claims and take legal action pertaining to TCF's sale or servicing of its loan, lease
and deposit products. Whether or not such claims and legal action have merit, they may result in significant financial
liability and could adversely affect the market perception of TCF and its products and services, as well as impact
customer demand for those products and services. Any financial liability or reputational damage could have a material
adverse effect on TCF's financial condition and results of operations.
In particular, the financial services industry has increasingly been targeted by lawsuits alleging infringement of patent
rights, often from patent holding companies seeking to monetize patents they have purchased or otherwise obtained.
Regardless of the scope or validity of such patents or other intellectual property rights, or the merits of any claims by
potential or actual litigants, the Company may have to engage in protracted and costly litigation which may be time
consuming and disruptive to TCF's operations and management. If the Company is found to infringe on one or more
patents or other intellectual property rights, it may be required to pay substantial damages or royalties to a third-party,
or it may be subject to a temporary or permanent injunction prohibiting the Company from utilizing certain technologies.
TCF is subject to environmental liability risk associated with lending activities.
A significant portion of TCF's loan portfolio is secured by real property. In the ordinary course of business, TCF may
foreclose on and take title to properties securing certain loans. In doing so, there is a risk that hazardous or toxic
substances could be found on these properties. If hazardous or toxic substances are found, TCF may be liable for
remediation costs, as well as for personal injury and property damage. Environmental laws may require TCF to incur
substantial expenses and may materially reduce the affected property's value or limit TCF's ability to use or sell the
affected property. In addition, future laws or more stringent interpretations or enforcement policies with respect to
existing laws may increase TCF's exposure to environmental liability. The remediation costs and any other financial
liabilities associated with an environmental hazard could have a material adverse effect on TCF's financial condition
and results of operations.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Offices TCF owns its headquarters office in Wayzata, Minnesota. Other operations facilities, located in Minnesota,
Illinois, California and South Dakota, are either owned or leased. These facilities are predominantly utilized by the
Lending and Funding segments. Several facilities in Minnesota are also utilized by the Support Services segment. At
December 31, 2015, TCF owned the buildings and land for 147 of its bank branch offices, owned the buildings but
leased the land for 26 of its bank branch offices and leased or licensed the remaining 202 bank branch offices, all of
which are functional and appropriately maintained and are utilized by both the Lending and Funding segments. These
branch offices are located in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, South Dakota and Indiana.
For more information on premises and equipment, see Note 7, Premises and Equipment of Notes to Consolidated
Financial Statements.