News & Analysis as of

Lenders Security Agreements

Paul Hastings LLP

Looking for Liquidity in Foreign Places: A Lender’s Guide to Financing Goods Located Outside the US Part I

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Part I: Whose Law is it Anyway? With elevated interest rates and rising labor and supply costs, many U.S. companies are looking for additional sources of capital to continue growing their businesses. Companies with...more

Seward & Kissel LLP

Assignment of Charter

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What is it and what does it do? An assignment of charter is a security agreement whereby a party (typically, a vessel owner) that has entered into a charter assigns its rights under such charter to a secured party...more

Kerr Russell

New Law Clarifies Lenders’ Rights To Collect Rent From Tenants Of A Borrower

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When a landlord defaults on a mortgage of its rental property, the lending institution will typically seek to collect rent from the borrower’s tenants in order to secure repayment of the loan....more

Cadwalader, Wickersham & Taft LLP

Searching for Dragons to Slay - March 2022 | Issue No. 167: ‘NAV’igating Cayman LP Interest Security – Lender FAQs

As noted in our previous update, “‘NAV’igating Cayman Share Security – Lender FAQs,” fund finance lenders are increasingly encountering pledges of shares in SPVs incorporated in the Cayman Islands as part of the collateral...more

Cadwalader, Wickersham & Taft LLP

Just the FAQs - December 2021 | Issue No. 154 - ‘NAV’igating Cayman Share Security – Lender FAQs

As the universe of asset-based and hybrid facilities continues to expand, fund finance lenders are increasingly encountering pledges of equity interests issued by funds or SPVs domiciled in popular jurisdictions outside of...more

Cadwalader, Wickersham & Taft LLP

An Active October - October 2021 | Issue No. 148 - A Brief Primer on Cayman Security

Many subscription facilities governed by New York law grant the lender a security interest in rights to call capital from the limited partners of exempted limited partnerships formed under the laws of the Cayman Islands....more

Amundsen Davis LLC

Cross Collateralization Generally Not Created By Note Alone

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From time to time, we review loan files for clients to confirm they have the collateral they think they do. Assume a lender has a properly perfected $1,000,000 mortgage loan and a $500,000 line of credit secured by all of the...more

Farella Braun + Martel LLP

Hidden Liens in Custom Crush Relationships: How to Avoid Being Caught Between Creditors

Custom crush is an effective method for vintners to start and grow their label and brand without requiring the capital intensive investment of a dedicated winery. When evaluating potential custom-crush facilities and...more

Sullivan & Worcester

Meeting the Challenges Covid-19 Poses for Trade Finance Transactions: Key Issues to Consider When Making Amendments and Waivers

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This article is the second in a series looking at how to address some of the issues affecting trade finance documentation and transactions in the current climate. The first article in this series analysed some of the...more

Troutman Pepper

Lender Beware: Two Recent Bankruptcy Cases Highlight Importance of Diligence in UCC-1 Filings

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Lenders should view as cautionary tales two recently handed down decisions regarding UCC-1 financing statements and the perfection of security interests. On December 20, 2019, the U.S. Bankruptcy Court for the District of...more

Kramer Levin Naftalis & Frankel LLP

Financing Statement Collateral Descriptions that Indicate Collateral by Reference Are Permissible under Article 9 of the UCC

Recently in In Re: 180 Equipment, LLC, a case of first impression, the United States Court of Appeals for the Seventh Circuit determined that the Illinois version of Article 9 of the Uniform Commercial Code (Illinois UCC)...more

Troutman Pepper

A Win for Lenders: Seventh Circuit Finds UCC-1 Collateral Description Reference Sufficient

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In a win for lenders, on September 11, the U.S. Court of Appeals for the Seventh Circuit reversed the U.S. Bankruptcy Court for the Central District of Illinois, holding that the collateral description in the UCC-1 financing...more

Troutman Pepper

Banks Beware! Parol Evidence May Not Correct Drafting Errors When Enforcing Security Agreements

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Secured transactions typically include two key documents, which are often executed simultaneously: a promissory note memorializing loan and repayment terms executed by the borrower in favor of the lender and a security...more

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