Payments to Investors in a Securitization Structure Protected from Avoidance

The Bankruptcy Court for the Northern District of Illinois recently held that payments made to investors in the two-tiered securitization structures commonly employed in commercial CMBS transactions are largely protected from fraudulent or preferential transfer claims by the securities contract safe harbor set forth in Bankruptcy Code section 546(e).

26 minute readAugust 02, 2015 at 12:00 AM
By
Shmuel Vasser
Shana White
Payments to Investors in a Securitization Structure Protected from Avoidance

In what appears to be a matter of first impression, the Bankruptcy Court for the Northern District of Illinois recently held that payments made to investors in the two-tiered securitization

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