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Equipment Lessors and Bankruptcy
Much has been written about the risk that a transaction denominated and documented as an equipment “lease” may be recharacterized a security interest. Indeed, it is old hat that UCC 1-203 is the basis of the analytical framework for determining whether an ostensible lease is actually a disguised security device. And, it is well understood that if the agreement at issue places the benefits and burdens of asset ownership on the so-called lessee, then a reviewing court will treat the transaction as a security interest and will treat the parties as secured lender and debtor, rather than as lessor and lessee. The result of such recharacterization can cause a lot of pain to the would-be lessor, unless that party made a prophylactic filing to comply with Article 9's perfection rules.
Equipment lessors seem, at least in our experience, to understand all of this. Consequently, they tend to make the requisite filing and when an oversight occurs, they tend to understand the consequences of that oversight. Interestingly, equipment lessors commonly seem to not understand all of the rights and remedies they have in the absence of recharacterization.
So, what's a true equipment lessor to do in the face of the Chapter 11 of its lessee?
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?