In Ken Weinberg’s estimation, Article 9 of the Uniform Commercial Code is an extremely thoughtful and thorough statute. But, he warns, it’s not the end all, be all of security interests, and it is therefore prudent to visit what is and what isn’t covered by Article 9’s broad scope.
Special required notices to guarantors and other byzantine defenses help to explain why so many guaranties are practically unreadable and why many are loathe to make changes to these documents. Take the much-examined case In Re TOUSA, Inc…
For many years, letters of credit have been used to facilitate sales of goods and to provide credit enhancement for all kinds of contractual obligations. Despite the widespread use of letters of credit over the years, many view letters of credit as complicated and esoteric instruments. Part II of this series addresses security interests in letters of credit and the role of letters of credit in syndicated transactions. The third and final portion of this article focuses on the roles of letters of credit in commercial loans and bankruptcy. This part examines the treatment of letters of credit in bankruptcy.
Trying to understand the whole of H.R. 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act, is tough. The Act is long, complex and if you are focusing directly on the credit crisis, the Act is not particularly intuitive. Grant Stephenson at the Columbus office of Porter White Morris & Arthur discusses the Act’s impact on community banks.
For many years, letters of credit have been used to facilitate sales of goods and to provide credit enhancement for all kinds of contractual obligations. Despite the widespread use of letters of credit over the years, many view letters of credit as complicated and esoteric instruments. Part II of this series addresses security interests in letters of credit and the role of letters of credit in syndicated transactions. Part III of this article, which will appear in the October edition of ABF Journal, explores the treatment of letters of credit in bankruptcy.
The recent intercreditor dispute between The Donald and corporate raider Carl Icahn has all the glitz of Atlantic City itself, including two competing but confirmable plans with senior and junior creditors slugging it out for ownership of a gaming empire.
The current economic situation, and the resulting increase in charge-offs and delinquency rates, now has many lenders scrambling to re-examine their policies and practices regarding protection of the collateral securing such loans. Ensuring the correct debtor name is sourced and filed on a UCC Financing Statement is the beginning part of that process.
For many years, letters of credit have been used to facilitate sales of goods and to provide credit enhancement for all kinds of contractual obligations. Despite the widespread use of letters of credit over the years, many view letters of credit as complicated and esoteric instruments.
This article highlights certain legal and practical issues related to making secured bridge loans to emerging companies. In particular, this article focuses on issues related to subordination of VC-provided bridge loans to existing and future senior debt and to appropriately structuring security agreements.
In October 2009, the Federal Trade Commission, at the request of Congress, delayed the enforcement of the so-called “Red Flag” rules geared to address the risk of identity theft until June 1, 2010. That date is important to financial institutions as failure to comply opens the door to legal aggravation including civil monetary fines and lawsuits.