Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
'Perfect Pay' Provisions in Troubled Credit Markets
As credit market turmoil continues to unfold, the landscape for securitizations, syndications, mergers, and acquisitions also continues to evolve and change. But some aspects of the finance world remain intact including use of 'perfect pay' or 'servicer advance' clauses in lease and loan portfolio sale and financing facility contracts ('Funding Agreements'). However, even these provisions face review and potential changes.
Syndications in Imperfect Credit Markets
In the current era of credit uncertainty spawned by the subprime mortgage crisis, perfect pay provisions may be subject to changes as banks, leasing companies, hedge funds, and other financial institutions to which these payments have been sold or pledged ('Funders') tighten credit standards and re-examine transaction risk, particularly in syndications of interests in leases and loans. Perfect pay provisions smooth payments to Funders and ease the administrative burden of matching actual original lease, conditional sale, or loan contract ('Contract') payment receipts to payments due to Funders. However, lessors or lenders that originate the underlying transaction ('Originators') must use care to maintain and provide to Funders accurate delinquency and default reporting with respect to the Contract subject to a perfect pay provision. Such effort is especially important when, upon hitting predefined delinquency and default triggers, a Contract may be subject to repurchase by or recourse to the Originator.
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.
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.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?