Ninth Circuit Insulates Corporate Insider from Preference Liability
October 02, 2015
"A corporate insider who personally guaranteed" the debtor's loan was not liable on a bankruptcy trustee's preference claim when the corporate debtor repaid its lender, held the U.S. Court of Appeals for the Ninth Circuit on May 6, 2015. Here's an in-depth analysis of the ruling.
Forum Selection Clause Held Waiver of Removal Right
October 02, 2015
A forum selection clause in an agreement provides that the parties "irrevocably consent to exclusive jurisdiction and venue of the state and federal courts in the state of Delaware." Does the provision constitute a waiver of a party's right to remove the case to federal court if the other party files suit in a Delaware state court?
Electronic Chattel Paper
October 02, 2015
One of the significant benefits bestowed upon chattel paper financers is the ability to perfect a security interest via possession, and in so doing potentially achieve priority over pre-existing secured lenders who perfected by filing a UCC Financing Statement. Now, the system is moving toward electronic chattel paper. What does this mean?
Supreme Court to Focus Legal Spotlight on Spousal Guaranty Issues
September 02, 2015
Spousal guaranties are about to receive additional scrutiny now that the United States Supreme Court has decided to grant certiorari to a decision by the Eighth Circuit regarding whether a spousal guarantor is an "applicant" entitled to bring an action under the Equal Credit Opportunity Act and related implementing regulation (Regulation B).
District Court Affirms Cramdown Interest Rate Calculation in <i>Momentive </i>
September 02, 2015
On May 5, 2015, United States District Judge Vincent L. Bricetti affirmed the confirmation order issued by United States Bankruptcy Judge Robert D. Drain in the MPM Silicones LLC ( Momentive ) Chapter 11 cases. We discussed the facts and analyzed Judge Drain's ruling with respect to the applicable cramdown interest rate to be applied to secured claims under section 1129(b)(2)(A)(i) of the Bankruptcy Code in a prior article ( see "Cramdown Interest Rates in Chapter 11," Equipment Leasing Newsletter , March 2015, http: //bit.ly/1Jr81HU). On appeal, the senior lien appellants argued that the plan of reorganization confirmed by Judge Drain violated section 1129(b) by using a "formula approach" to calculate the cramdown interest rate, and, in the alternative, by calculating the cramdown interest rate under the formula approach incorrectly.
Auto-Renewals and the True Lease Question
September 02, 2015
Outside of bankruptcy, if the rights of a lessor against a lessee in default are to be enforced, there is a very material difference in the rights and obligations of both parties depending upon whether the UCC Article to be applied is Article 2A governing true leases or Article 9 governing secured transactions.
Collateral Descriptions and Blanket Liens
August 02, 2015
Describing the collateral for an all-assets lien intuitively might seem easy. However, getting collateral descriptions correct under the rules of Article 9 of the Uniform Commercial Code (UCC) has challenged secured lenders for decades, and all-assets liens are no exception. A look at two recent cases.
Good News, Bad News: Credit and Collections
August 02, 2015
The robust economy's low default rate has many creditors rethinking their collections practices and capabilities. But what should be their strategy for when the good times end?
DE Dealer Statute Only Covers New Equipment
August 02, 2015
Suppliers only have to repurchase new, unused equipment from dealers under Delaware's Equipment Dealer Contracts Statute, the state Supreme Court has ruled in answering a question certified from the Third Circuit.
