Now that the American Land Title Association ("ALTA") has withdrawn the ALTA Form 21-06 Creditor's Rights Endorsement, what steps can a lender take to protect itself?
To recap, the Creditors' Rights Endorsement provided protection against loss or damage sustained by the lender in the event that the lender's mortgage was set aside due to a fraudulent conveyance or preference under the U.S. Bankruptcy Code, state insolvency statutes or other creditor's rights laws.
There is growing recognition that the directors of an insolvent corporation owe a duty of care to the corporation’s creditors. Although this duty is not a fiduciary duty, the directors, in determining whether the board is acting with a view to the best interests of the corporation, may need to consider the interests of, inter alia, shareholders, employees, suppliers, creditors, consumers, governments and other stakeholders. Until recently, it was believed that the U.S. and U.K.
The long-awaited amendments to Canada’s Bankruptcy and Insolvency Act (BIA) and Companies’ Creditors Arrangements Act (CCAA) came into force on September 18, 2009.
Chapter 15 of the United States Bankruptcy Code, 11 U.S.C § 101 et seq., which incorporates most of the provisions of the United Nations’ Model Law on Cross-Border Insolvency,[1] was enacted as part of the Bankruptcy Abuse and Consumer Protection Act of 2005. Chapter 15 replaced former 11 U.S.C. § 304, which was been enacted in 1978 to provide specific procedures by which a representative in a foreign bankruptcy proceeding could obtain relief in U.S. courts to facilitate the foreign bankruptcy proceeding.
During the present downturn in the U.S. economy, opportunities exist for investors in global distressed asset markets. Purchasers and sellers involved in these markets should be aware of the various mechanisms that are available to transfer assets of distressed companies. Historically, asset sales under s. 363 of the Bankruptcy Code1 have proven to be cheaper and faster than purchasing distressed assets through a Chapter 11 reorganization. Recent cases have shown that s.
When an insurance company becomes insolvent, one key issue is the extent to which the insurer's liquidator may recover prior payments made by the insurer. On February 23, 2009, the Supreme Court of Pennsylvania issued a significant decision limiting such recoveries. The court held that payments made by a failed Pennsylvania insurance company in the ordinary course of business are not recoverable by the statutory liquidator of the insolvent insurer.
On February 23, 2009, the Supreme Court of Pennsylvania issued a decision finding that payments made by a failed Pennsylvania insurance company in the ordinary course of business are not recoverable by the statutory liquidator of the insolvent insurer because the payments were not on account of an "antecedent debt" as that term is used in the voidable preference provision of Pennsylvania's Insurance Act.
*As seen on Bankruptcy Law360.
October 17, 2008 marked the third anniversary of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). This sweeping bankruptcy reform was designed to eliminate bankruptcy as an option for many would-be filers. While there is no doubt BAPCPA impacted bankruptcy filings both nationally and in West Virginia, recent trends suggest filings are on the rise and could reach pre-BAPCPA levels in the foreseeable future.
The 2005 Boom
Recent Developments in the Zone of Insolvency