A mortgage loan repurchase facility (more casually referred to as a "repo") is a financing structure commonly utilized to finance mortgage loans. These facilities are utilized by both residential and commercial mortgage loan originators and aggregators to finance mortgage loans that they originate or acquire. The structure is favored by liquidity providers in the mortgage loan finance arena due to its preferential "safe harbor" treatment under the United States Bankruptcy Code (the "Bankruptcy Code"), as further described below.
Liquidators have more certainty about their ability to disclaim the environmental liabilities and responsibilities of a company in liquidation.
The liquidators were not bound to cause Linc to comply with the EPO from the date of the disclaimer.