News & Analysis as of

Borrowers Can Avoid Liability Even After a Trustee’s Sale

Since a lender must have a valid debt and valid lien to conduct a trustee’s sale, a borrower that allows the foreclosure sale to occur impliedly agrees that the debt and lien are valid. In Madison v. Groseth and BT Capital,...more

A Primer On UCC Article 9 Sales

Article 9 of the Uniform Commercial Code sets forth a statutory scheme for both creating and enforcing security interests in personal property. Pursuant to Article 9, a lender seeking to collateralize an advance on the...more

"Legendary" Case Confirms Guarantor's Independent Liability

In a published and precedent establishing case, the California Court of Appeal recently confirmed a guarantor’s separate and independent liability to a lender even if the borrower’s own liability has been discharged or...more

Bankruptcy: Preference Defendants Don’t Feel “Preferred”

This year, many unsuspecting businesses will be hauled into court by a trustee seeking return of a “preferential” payment made by a party now in bankruptcy. To those uninitiated, a bankruptcy trustee’s power to “avoid” or...more

Revised LMA Standard Terms And Conditions For Par And Distressed Trade Transactions (Bank Debt/Claims) – ‘The Plainer English...

Background - The Loan Market Association (“LMA”) recently produced a revised version of the LMA Standard Terms and Conditions for Par and Distressed Trade Transactions (Bank Debt/Claims) (the “Revised Terms and...more

Tips For Collecting What You Are Owed

1. Make sure you have what you need from the start - Take advantage of all information needed to collect at the time the loan is made / the services are provided etc. The borrower or customer wants/needs your money/services...more

Commentary - General Obligation Debt: The Good, the Bad and the Ugly

Some in the public finance world are arguing that the Detroit bankruptcy and similar situations call into question the efficacy of general obligation debt, thereby undermining the market for and pricing of general obligation...more

What to Know about CFPB Supervision and Examination

The Consumer Financial Protection Bureau (“CFPB”) recently issued its final rule that establishes procedures to bring under its supervisory authority nonbanks whose activities it has reasonable cause to determine pose risks...more

Tax Filing By Lender Discharges Borrower From Mortgage Liability

If a taxpayer who has borrowed money from bank defaults on repayment and does not repay the bank, the taxpayer will have cancellation of indebtedness income to the extent that the amount due the lender exceeds the value of...more

Florida Spendthrift Trust Protection Withstands Constitutional Challenge [Florida]

Louis Steinmetz signed a personal guaranty of a $350,000 loan made to an LLC. The LLC defaulted on the loan....more

Lenders Beware: Debt Can Now Be Recharacterized as Equity in the Ninth Circuit

For the last 27 years, bankruptcy courts in the Ninth Circuit consistently held that debt could not be recharacterized as equity unless the movant proved inequitable conduct by the debt holder. On April 30, 2013, the Ninth...more

Ninth Circuit Widens Circuit Split Over Application of State or Federal Bankruptcy Law To Determine Whether Claims of...

In an important decision for private equity sponsors and other insiders who advance loans to their businesses, on April 30, 2013, the Ninth Circuit Court of Appeals in In re Fitness Holdings International confirmed that...more

Bankruptcy Implications of Affiliated Lender Provisions and Debt Buybacks - Unenforceability of Bankruptcy Voting Proxies Expose...

Over the last few years, provisions in credit agreements permitting the Borrower’s equity sponsor and other affiliates (typically referred to as “Affiliated Lenders”), to purchase term loans made thereunder and allowing the...more

Rogers Towers: Debts Non-Dischargeable When Use of Proceeds Intentionally Misrepresented

When an individual obtains a loan with no intention of repaying the lender, it is well established that such a debt is not dischargeable in bankruptcy. If, however, a debtor does not misrepresent its intent to repay the...more

Summary Of HUD’s LEAN 232 Program E-Mail Blast: Office Of Residential Care Facilities (ORCF), February 28, 2013

In an effort to summarize the highlights of the U.S. Department of Housing and Urban Development (HUD) LEAN E-mail Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper are providing this...more

Turkcell Litigation – Pivotal Ruling: Privy Council Confirms Cukurova’s Entitlement to Relief from Forfeiture

After more than five years of litigation between Cukurova of Turkey and Alfa of Russia, the Privy Council has delivered a pivotal ruling in Cukurova’s favour. The decision establishes that a borrower may be entitled to...more

Crunched Credit - January 2013

Below are links to some recent CrunchedCredit posts,including a preview of next week’s CREFC conference inMiami. For more information or to subscribe, visit us atCrunchedCredit.com. You can also sign up to receiveemail alerts...more

17 Results
|
View per page
Page: of 1