Recharacterization Risks: Beware!
September 11, 2003
To the unwary, Revised Article 9 of the Uniform Commercial Code may pose significant risks. The Article is intended to cover all transactions, <i>regardless of form</i>, that in economic substance create a security interest. Using this broad policy mandate, courts have frequently disregarded many different transaction forms that, on their face, were documented to appear to be outside the scope of Revised Article 9. When this occurs the party that is deemed a secured lender in the recharacterized transaction will face losing substantial rights — unless that party complied with Article 9's perfection rules, which typically require the filing of a financing statement.
O (Why) Canada? The Ontario Court of Appeal Speaks in Rare Franchising Decision
<i>Part 1 of a 2-part series.</i> Why should U.S. franchisors care about Canada and Canadian franchise law? Savvy franchisors realize that Canada's population is about the same as California's, and that the tastes of many Canadians are similar to (and molded) by their American counterparts. Also, U.S. franchisors' investment in Canada is facilitated under the North American Free Trade Agreement and the Investment Canada Act. While there are certainly similarities between the United States and Canada in the law respecting business-format franchising and trademarks, there are some major differences as well — some subtle; others not so subtle.
IN THE MARKETPLACE
September 10, 2003
Highlights of the latest equipment leasing news and cases from around the country.
Kmart Bankruptcy: Lessons for Lessors and Secured Parties
September 10, 2003
One of the most fundamental and critical principles that enables the equipment leasing industry to function on a day-to-day basis is commercial certainty ' certainty in expectations regarding financing; certainty in the meaning of documentation; and reliance on the certainty of the application of legal principles that will be brought to bear in the event of a lease default or bankruptcy.
IN THE MARKETPLACE
September 02, 2003
Highlights of the latest equipment leasing news from around the country.
American Indians and Lease Transactions
September 02, 2003
There are more than 500 nationally recognized Indian tribes in the United States, and as a general rule, state civil laws do not apply to transactions in which they are involved (whether on reservations or not).
Post-Petition Rent Obligations: Use and Occupancy v. Due Date
September 02, 2003
Confused about when a real property landlord or equipment lessor can commence charging post-petition rental payments? Does a debtor's obligation under Section 365(d)(3) of the Bankruptcy Code, (hereinafter, the 'Code') to timely perform all obligations arising after the order for relief (or under Section 365(d)(10), 60 days after the order of relief), mean those obligations that 'arise' by virtue of actual post-petition use of the property as opposed to obligations that arise by virtue of the 'due date' of the rental payment by contract or invoice?
Development
September 02, 2003
Recent rulings of importance to your practice.
News Briefs
September 01, 2003
Highlights of the latest franchising news from around the country.