Recreational marijuana is legal in two states—Washington and Colorado—and medical marijuana is legal in another twenty-one states. Colorado alone has over 500 marijuana dispensaries and that number is on the rise. However, as the marijuana industry continues to grow, federal law still prohibits the use of marijuana. So what happens when a marijuana business becomes insolvent? Does it have the right to avail itself of the protections of the Bankruptcy Code?
Why it matters
Loan agreements and bond indentures often contain "make-whole" provisions, which provide yield protection to lenders and investors in the event of a repayment prior to maturity. They accomplish this by requiring the borrower to pay a premium for pre-payment of a loan. This allows lenders to lock-in a guaranteed rate of return when they agree to provide financing. Borrowers also benefit since the yield protection allows lenders to offer lower interest rates or fees than they would absent such protection.
The Supreme Judicial Court of Massachusetts has answered a lingering question about the interpretation of Massachusetts’s fine art consignment law, G.L. c. 104A, § 2. Laying to rest any doubts about whether a written agreement is required at the time of delivery to create a consignment under the statute, the SJC has interpreted the 2006 amendments to the law for the first time and clarified the roles of everyone involved.
In re Denman, 513 B.R. 720 (Bankr. W.D. Tenn. 2014) –
A chapter 13 debtor was a member of a limited liability company. Another member sought relief from the automatic stay in order to exercise a right to acquire the debtor’s membership interests pursuant to the LLC operating agreement.
Many indentures contain “make-whole provisions,” which protect a noteholder’s right to receive bargained-for interest payments by requiring compensation for lost interest when accrued principal and interest are paid early. Make-whole provisions permit a borrower to redeem or repay notes before maturity, but require the borrower to make a payment that is calculated to compensate noteholders for a loss of expected interest payments.
If the summer whizzed by too fast and you are still using your old Circular 230 disclaimer on emails and correspondence, it is time to fix that.
The 2005 Amendments to the Bankruptcy Code ushered in section 503(b)(9) of the Bankruptcy Code, which grants trade creditors an administrative expense for goods sold to the debtor in t
On February 13, 2014, the New Mexico Supreme Court filed its Opinion in Bank of New York v. Romero, 2014-NMSC-007. The opinion in BNY v.