Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Bankruptcy Code's Anti-Discrimination Section and COVID-19
The pandemic has spurred analysis of legal issues as businesses grapple with their respective relationships with both private and public entities. For example, corporate general counsel suddenly were flooded with law firm alerts analyzing the scope of force majeure clauses — a contract term that is rarely the focus of negotiation. In this article, the authors examine Section 525 of the Bankruptcy Code — the anti-discrimination section, and its implications during COVID-19.
A number of bankruptcy courts have been faced with a novel issue on an emergency basis. In response to the pandemic, the federal government enacted the highly published payroll protection loan program to assist devastated small businesses and nonprofit enterprises. However, the Small Business Administration (SBA) issued regulations that disqualified Chapter 11 debtors from participating in the program. Several debtors have sought emergency injunctions to compel the SBA to process their loan applications notwithstanding their ongoing bankruptcy cases. The results have been mixed; some courts have directed the SBA to process the applications, and others uphold the SBA's exclusion of bankrupt debtors from the PPP lifeline.
The Archdiocese of Santa Fe
This issue was recently considered by the U.S. Bankruptcy Court for the District of New Mexico in Roman Catholic Church of the Archdiocese of Santa Fe v. U.S. Small Business Administration (In re Roman Catholic Church of the Archdiocese of Santa Fe), Adv. Case No. 20-01026 (May 1, 2020). According to the opinion, the archdiocese filed for Chapter 11 on Dec. 3, 2018, and has been operating as debtor-in-possession.
On March 27, in response to the pandemic, the president signed the Coronavirus Aid, Relief, and Economic Security Act, H.R. 748 P.L. 115-136 (the CARES Act). The court noted: "The CARES Act is intended, among other things, to provide stimulus to the economy by distributing approximately $2.3 trillion to various industries, programs, and individuals." The CARES Act added a new "Paycheck Protection Program" to be administered by the SBA. The PPP program enabled "eligible recipients" to receive "paycheck protection loans." The funds were to be used for various operational costs related to payroll, benefits, mortgage payments, utilities and interest payments.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
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.
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.
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.
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?
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.