Supreme Court to Focus Legal Spotlight on Spousal Guaranty Issues
September 02, 2015
Spousal guaranties are about to receive additional scrutiny now that the United States Supreme Court has decided to grant certiorari to a decision by the Eighth Circuit regarding whether a spousal guarantor is an "applicant" entitled to bring an action under the Equal Credit Opportunity Act and related implementing regulation (Regulation B).
District Court Affirms Cramdown Interest Rate Calculation in <i>Momentive </i>
September 02, 2015
On May 5, 2015, United States District Judge Vincent L. Bricetti affirmed the confirmation order issued by United States Bankruptcy Judge Robert D. Drain in the MPM Silicones LLC ( Momentive ) Chapter 11 cases. We discussed the facts and analyzed Judge Drain's ruling with respect to the applicable cramdown interest rate to be applied to secured claims under section 1129(b)(2)(A)(i) of the Bankruptcy Code in a prior article ( see "Cramdown Interest Rates in Chapter 11," Equipment Leasing Newsletter , March 2015, http: //bit.ly/1Jr81HU). On appeal, the senior lien appellants argued that the plan of reorganization confirmed by Judge Drain violated section 1129(b) by using a "formula approach" to calculate the cramdown interest rate, and, in the alternative, by calculating the cramdown interest rate under the formula approach incorrectly.
Auto-Renewals and the True Lease Question
September 02, 2015
Outside of bankruptcy, if the rights of a lessor against a lessee in default are to be enforced, there is a very material difference in the rights and obligations of both parties depending upon whether the UCC Article to be applied is Article 2A governing true leases or Article 9 governing secured transactions.
Collateral Descriptions and Blanket Liens
August 02, 2015
Describing the collateral for an all-assets lien intuitively might seem easy. However, getting collateral descriptions correct under the rules of Article 9 of the Uniform Commercial Code (UCC) has challenged secured lenders for decades, and all-assets liens are no exception. A look at two recent cases.
Good News, Bad News: Credit and Collections
August 02, 2015
The robust economy's low default rate has many creditors rethinking their collections practices and capabilities. But what should be their strategy for when the good times end?
DE Dealer Statute Only Covers New Equipment
August 02, 2015
Suppliers only have to repurchase new, unused equipment from dealers under Delaware's Equipment Dealer Contracts Statute, the state Supreme Court has ruled in answering a question certified from the Third Circuit.
Like Kind Exchange for Equipment Lessors
July 02, 2015
If you dispose of an business asset and subsequently reinvest your sales proceeds to acquire a "like-kind" replacement asset of equal or greater value, then the recognition of taxable gain (along with the lessor's obligation to pay tax on that gain) is deferred until the replacement asset is sold or, in the case of subsequent follow on exchanges, until the replacement's replacement asset is sold in a taxable disposition.