Commercial Law

  • Claims Trading Restrictions Dealt Setback

    In recent years, debtors in large corporate bankruptcies have sometimes sought and obtained, in varying degrees, authority at the outset of bankruptcy cases for severe restrictions on trading in claims against the debtors by substantial claimholders. In practice, however, these debt-trading orders have chilled the market for trading in debt securities and served to entrench existing management by effectively precluding substantial investors from acquiring meaningful positions in the debtor's debt securities.

    December 22, 2006Todd A. Feinsmith and John C. Elstad

  • Emfore v. Blimpie: License to Commit Fraud or Common-Sense Decision?

    Better ingredients, it is said, make for a better pizza, and, as Emfore Corp. v. Blimpie Associates, Ltd. (N.Y. Sup. Ct. Sept. 18, 2006) suggests, better documents make for better decisions, at least if you are the franchisor.

    November 30, 2006J. David Mayberry and Rupert M. Barkoff

  • In the Marketplace

    Highlights of the latest equipment leasing news from around the country.

    November 30, 2006ALM Staff | Law Journal Newsletters |

  • The USA PATRIOT Act Renewed: Reassessing Money Laundering Risk in Finance Transactions

    Part One of this series discussed how the federal government is stepping up its aggressive enforcement of anti-money laundering/combating the financing of terrorism ('AML/CFT'). This second installment addresses action steps for leasing and financing businesses affected by the AML/CFT program.

    November 30, 2006Stephen J. McHale and David G. Mayer

  • The Credit Agency Reform Act: What Leasing Companies Need to Know

    Any equipment leasing or finance company desiring to access the debt capital markets must quickly become adept at dealing with a unique feature of that world: the credit rating and its gatekeeper, the credit rating agency. Entering this realm can be a jolt for finance officers used to the relationship-friendly, competitive environment of commercial banks. Dominated by two monoliths, Standard & Poor's and Moody's, the rating agency process is steeped in the clinical analytics of credit modeling. Rating agencies are viewed by many as academic in perspective and, to some, remote and obscure in their approach.

    November 30, 2006Barbara M. Goodstein and Margarita Glinets

  • Ninth Circuit BAP Holds Lease Payment Streams Are Not Chattel Paper

    In August 2006 the U.S. Bankruptcy Appellate Panel of the Ninth Circuit rendered a decision in a case titled In Re: Commercial Money Center, Inc. (Netbank, FSB v. Kipperman), U.S. Bankruptcy Appellate Panel of the Ninth Circuit, BAP No. SC-05-1238-MoTB; Bk.No. 02-09721-H7; Adv. No. 03-90331-H7, holding that payment streams stripped from equipment leases are payment intangibles, not chattel paper, and thereby overturning the bankruptcy court decision. Accordingly, the assignment of the payment streams could be automatically perfected under '9-309(3) of Revised Article 9. Additionally, the court agreed with the bankruptcy court and held that the transactions in this case were loans, not sales, so there was no automatic perfection. Finally, the court held that there were unresolved factual and legal issues as to whether the lender had perfected its security interest in the leases by taking possession through a third-party agent, and therefore remanded the case for further proceedings.

    November 30, 2006Barry A. Graynor

  • Real Property Law

    A look at the Duty to Inquire.

    November 29, 2006ALM Staff | Law Journal Newsletters |

  • Landlord & Tenant

    Analysis of key rulings.

    November 29, 2006ALM Staff | Law Journal Newsletters |

  • Development

    In-depth analysis of recent rulings.

    November 29, 2006ALM Staff | Law Journal Newsletters |