Corporate President May Avoid a Personal Guaranty
In a recent decision, <i>Cummings Properties, Inc. v. Aspeon Solutions, Inc., et al.</i> (Lawyers Weekly No. 13-019-07), the Massachusetts District Court/Boston Municipal Court Appellate Division affirmed the District Court judge's findings at trial that a defendant could not be held personally liable on a guaranty contained in a commercial real estate lease that the defendant quickly signed in two places before rushing off to the airport to make a flight. This decision was affirmed by the appellate division based on the defense of fraud in the factum.
Lease Financing of Solar Power
Hardly a day goes by without major media attention to global warming and the need to develop and invest in sources of alternative energy. Legislation to encourage investment in renewable energy has bipartisan support. Tax legislation passed in 2005 and 2006 extended the renewable energy production tax credit and the energy investment tax credit to facilities placed in service before Jan. 1, 2009. Further extension and expansion of these credits is expected from the current Congress. The extension of the tax credits, the adoption of minimum alternative energy requirements by many states, and greater public and political support for alternative energy resources have increased interest in the development and financing of wind, biomass, geothermal, and solar facilities. An active financing market has developed.
In the Marketplace
Highlights of the latest equipment leasing news from around the country.
FTC and Texas AG File Suit Against IFC Credit
In yet another round of lawsuits stemming from the NorVergence telecommunications fraud, the Federal Trade Commission and the Attorney General of Texas filed simultaneous complaints in the U.S. District Court for the Northern District of Illinois and Harris County, TX, against Illinois-based commercial finance company IFC Credit for violating federal law by helping to finance the scheme and continuing to seek payment from defrauded NorVergence customers.
Toll Road Leasing Programs: Ready to Roll?
Part One of this series discussed precedent transactions and standard terms and conditions in the toll road leasing market. The conclusion continues the discussion of terms and conditions and addresses legislative developments.
Is Your (Non-True) Lease a Sale?
Just in case the transaction you've just documented using your standard lease forms is not a 'lease,' you've included a granting clause in the form and filed UCC 'notice' filings. So, you've protected the lessor from a re-characterization risk (<i>i.e.,</i> that the transaction is deemed not to create a 'lease' under commercial law) — right? Well, maybe not.
Anti-Suit Injunctions: Is the Best Defense a Strong Offense?
In a case of significance to the secondary loan and distressed claim market, a North Carolina state court has entered an 'anti- suit injunction' barring a group of secondary, secured debt holders (the 'Fund Defendants'), from commencing any actions against Wachovia Bank. The case, <i>Wachovia Bank, NA and Wachovia Capital Partners, LLC v. Harbinger Capital Partners, et al.</i>, Civ. Action No. 07-CVS-5097 is pending in the General Court of Justice, Superior Court Division (Mecklenburg, NC) (the 'State Court Anti-Suit Action'), but its parties and the underlying facts arise from the Chapter 11 case of <i>In re Le-Nature, Inc.</i> pending in U.S. Bankruptcy Court, Western District of Pennsylvania (the 'Bankruptcy Case').
