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Court rules lender’s intent is irrelevant in authorizing UCC termination statement

A lender cannot rely on its subjective intent in claiming that an otherwise properly filed UCC termination is ineffective, according to a recent decision by the United States Court of Appeals for the Second Circuit. Put another way, if a lender authorizes a termination statement, the termination is valid upon filing such UCC-3 even if the authorization was mistakenly given. While this result is not surprising, it does put lenders (and their counsel) on notice to be diligent in reviewing and authorizing the filing of UCC termination statements.

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, JPMorgan Chase, Uniform Commercial Code (USA)
House of Representatives passes “Financial Institution Bankruptcy Act of 2014” in an attempt to improve big bank reorganization process

Overview

On Monday, December 1, 2014, the U.S. House of Representatives unanimously passed the Financial Institution Bankruptcy Act of 2014 (“FIBA” or “the Act”). The Act, which garnered bipartisan support as well as the approval of financial regulators, seeks to facilitate the recapitalization of financial institutions by reforming the bankruptcy process, while maintaining financial stability in U.S. markets. The Act now must be approved by the Senate and then signed into law by the President.

USA, Insolvency & Restructuring, Kramer Levin Naftalis & Frankel LLP
There’s no equity in law

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Amicus curiae, Title 11 of the US Code, Supreme Court of the United States, United States bankruptcy court
U.S. bankruptcy laws may prevent a patent licensor from using foreign bankruptcy proceedings to cancel patent cross-licenses and impose new royalty-bearing licenses

First published in LES Insights

USA, Insolvency & Restructuring, Litigation, Patents, Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, Bankruptcy, United States bankruptcy court
The ABCs of Chapter 15 -- Third Circuit upholds broad scope of recognition in cross-border cases

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Collateral (finance), Limited liability company, Liquidation, Liquidator (law), Unsecured creditor, Third Circuit
That makes two for the FDIC: 11th Circuit Court of Appeals issues another precedential decision interpreting tax sharing agreements in bankruptcy, awards ownership of tax refund to FDIC

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USA, Insolvency & Restructuring, Litigation, Tax, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Debtor, Federal Deposit Insurance Corporation (USA), Eleventh Circuit
Second Circuit in AMR Corp. – “no make-whole” based on plain meaning of indentures and discusses consequences of section 1110 payments

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bond (finance), Default (finance), Title 11 of the US Code, Second Circuit
Third Circuit confirms narrow construction of the doctrine of equitable mootness – burden on appellant and use of the doctrine should be “rare”

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Class action, Legal burden of proof, Third Circuit
It’s called "adequate" – not "automatic" – protection

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Debtor, Collateral (finance), Legal burden of proof, Tax lien, Bankruptcy Appellate Panel
Tax sharing agreements in bankruptcy – a tale of two jurisdictions

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USA, Insolvency & Restructuring, Litigation, Tax, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Holding company, Federal Deposit Insurance Corporation (USA), Eleventh Circuit