In the December 2005 issue of this publication, this author reviewed the Seventh Circuit's decision in United Air Lines, Inc. v. HSBC Bank USA, N.A.,
Keep Your Lease A Lease: Seventh Circuit Finds the Severability of a Contract Defeats Re-characterization
In the December 2005 issue of this publication, this author reviewed the Seventh Circuit's decision in <i>United Air Lines, Inc. v. HSBC Bank USA, N.A.</i>, 416 F.3d 609 (7th Cir. 2005) (<i>'United I'</i>). In that decision, the Seventh Circuit was asked to determine whether a transaction involving land at the San Francisco airport that was denominated as a lease in the agreement would be treated as a lease for bankruptcy purposes. The Seventh Circuit held that it would look at the substance of the transaction and beyond the form and labels imposed by the parties' documentation.
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