Lenders, Split of Authority

Ninth Circuit Weighs in on “Preemptive” Challenges to Lender’s Authority to Foreclose

Patton Sullivan Brodehl LLP on 7/31/2020

Can a California real property owner challenge a lender’s authority to foreclose before a foreclosure sale has occurred? It’s looking less likely with each new appellate opinion....more

Pre-Bankruptcy Seizure: Recent Third Circuit Decision Widens Circuit Split Regarding Obligations of Secured Creditors in Respect...

Patterson Belknap Webb & Tyler LLP on 11/8/2019

In July 2016, Joy Denby-Peterson purchased a Chevrolet Corvette. When she defaulted on one of her car payments a few months later, the Corvette was repossessed by her lender. Denby-Peterson then filed a voluntary petition...more

When the Same Lender Has Both a Senior and Junior Deed of Trust (Revisited)

Patton Sullivan Brodehl LLP on 5/20/2019

Almost two years ago, Money and Dirt covered a Fourth District California Court of Appeal opinion addressing an apparent split of authority regarding how a lender can enforce senior and junior deeds of trust on the same...more

Fifth Circuit Suggests Claims for Make-Whole Amounts Should Be Disallowed

Jones Day on 1/31/2019

The Situation On January 17, 2019, the Fifth Circuit strongly suggested that claims for make-whole damages be characterized as "unmatured interest" and that claims for postpetition interest on unsecured debt be limited in...more

Supreme Court To Hear Dispute Over Debt Recharacterization

Kramer Levin Naftalis & Frankel LLP on 7/12/2017

One critical issue affecting complex restructuring cases are efforts by the estate or creditors to recharacterize debt into equity. This can happen in a variety of factual contexts, including where an existing equity...more

SCOTUS to Settle Circuit Split on Rule Applicable to Recharacterization of Debt to Equity Disputes

Mintz - Bankruptcy & Restructuring Viewpoints on 7/5/2017

The Supreme Court has granted certiorari to decide the question of whether bankruptcy courts should apply state law or a federal rule of decision when determining whether to recharacterize a debt claim as a capital...more

In Conflict With Other Circuits, Seventh Circuit Rules That Certain Transfers Involving Financial Institution Intermediaries Not...

Proskauer - Corporate Defense and Disputes on 8/3/2016

Section 546(e) of the bankruptcy code prohibits a bankruptcy trustee from avoiding “settlement payment[s]”, or payments “made in connection with a securities contract,” that are “made by or to (or for the benefit of)”...more

Lenders › Split of Authority