Shortfall Fees in Factoring Pact
February 29, 2008
In a recent decision, Judge Shira A. Scheindlin of the U.S. District Court for the Southern District of New York applied New Jersey law in ruling that a shortfall fee charged by a factoring company was enforceable, pursuant to an alternative fee structure under a certain factoring agreement.
Inaccurate Financing Statement
February 29, 2008
Sure, it happens. People make mistakes. But, when does a mistake made on a financing statement render it 'seriously misleading' under revised Uniform Commercial Code '9-506 and thus ineffective to perfect an asserted security interest? The Bankruptcy Court for the Southern District of Florida recently addressed this issue in the case of <i>In re John's Bean Farm of Homestead Inc.</i>
Lease Voided Due to Vendor' Default
February 29, 2008
On Oct. 31, 2007, a trial-level court in New York issued a decision finding that an equipment lease 'fail[ed] for lack of consideration' when the bankrupt vendor did not deliver the leased equipment, even though the lessee had signed a lease amendment ... a look at the ruling.
Who Benefits?
February 29, 2008
An anlysis of the recent case of <i>Rush v. U.S. Bancorp Equipment Finance, Inc.</i>, __ S.D. Rep. ___ (2007 SD 119, Nov. 14, 2007). There, the plaintiff put forth the novel contention that the creditor/defendant should have protected the debtor's financial condition by perfecting the creditor's interest.
Cleaning up After Debtor/Tenants
February 26, 2008
The Ninth Circuit has created a dubious distinction between tort-like damages and other non-rent damages that will undoubtedly spawn uncertainty and litigation. The authors explain why.
'Perfect Pay' Provisions in Troubled Credit Markets
January 31, 2008
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.
