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Secured Lender Invokes Seldom-Used Tool to Protect Collateral in Bankruptcy
The commercial real estate market continues to struggle. Beyond record vacancy levels, generally poor market conditions, financing difficulties and other well-known issues of late, many mortgage holders realize that their properties are worth significantly less than their mortgage balance. Consequently, they are walking away from the properties or otherwise looking for a way to reduce their mortgage obligation to the property's current depressed market value, including through a Chapter 11 bankruptcy process. Ultimately, the question in that situation becomes: Who will take the loss on their balance sheet ' the lender or the borrower? Often, the loss falls on the lender, which has significant impact on the overall commercial leasing market by increasing the costs of financing that are ultimately passed on to property lessees.
On Jan. 19, 2012, however, the United States Court of Appeals for the Seventh Circuit issued an opinion, authored by Judge Richard A. Posner, representing a significant victory for undersecured lenders holding distressed real estate collateral. In that case, In re River East Plaza, LLC, No. 11-3263, — F.3d —-, 2012 U.S. App. LEXIS 1048 (7th Cir. Jan. 19, 2012), the subject property was the River East Plaza building, located near Navy Pier in downtown Chicago. Neal, Gerber & Eisenberg LLP (NGE) was lead counsel to the property owner's senior secured lender, LNV Corp., an affiliate of Beal Bank.
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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.
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.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.