Category Archives: Financing

Scrivener’s Error: Can a Residential Deed of Trust Be Avoided Because It States That It Secures a Maximum Principal Amount of $21.1 Trillion?

Rouse v. U.S. Bank, N.A. (In re Lolley), 607 B.R. 673 (Bankr. W.D. Mo. 2019) – A chapter 7 trustee sought to avoid a deed of trust lien on the grounds that it did not comply with statutory requirements. Specifically, the … Continue reading

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UCC Collateral Description: Can You Look Beyond the Four Corners of the Financing Statement?

First Midwest Bank v. Reinbold (In re I80 Equipment, LLC), 938 F.3d 866 (7th Cir. 2019) – In connection with a lawsuit to recover a loan secured by substantially all of a debtor’s assets, a lender sought a declaration that its … Continue reading

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Real Estate Purchase Agreement: Contract for Deed or Mortgage – It Makes a Difference

In re Edwards, 606 B.R. 356 (Bankr. E.D. Ark. 2019) – A chapter 13 debtor proposed a plan that treated a contract for deed as a secured claim. The seller objected, contending that the contract was terminated prepetition so that the … Continue reading

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Documents Under Seal: The Word “Seal” on a Preprinted Form May Be More Than a Vestige of Times Gone By (a/k/a 20 Years Is a Long Time)

In re George, 606 B.R. 236 (Bankr. E.D. Pa. 2019) – A chapter 13 debtor objected to the proof of claim filed by a lender asserting an unsecured claim based on the debtor’s guaranty. The debtor contended that the guaranty was … Continue reading

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Anti-Assignment Provisions: Restrictions on Transfer of Promissory Notes May Be More Enforceable Than You Might Expect

In re Woodbridge Group of Companies, LLC, 608 B.R. 201 (D. Del. 2019) – The debtor objected to a creditor’s proof of claim on the grounds that transfer of the claim to the creditor was unenforceable against the debtor because it … Continue reading

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Cash Collateral: What Does It Take to Address the Risk That Once Cash Is Used It Is Just Gone?

In re Tevoortwis Dairy, LLC, 605 B.R. 833 (E.D. Mich. 2019) – A Chapter 11 debtor filed a motion to use cash collateral. The key question was whether there was adequate protection of the lender’s interest in the cash collateral.

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Discharge Injunction: Is a Billing Statement Disclaimer Enough to Avoid Contempt?

Roth v. Nationstar Mortgage, LLC (In re Roth), 935 F.3d 1270 (11th Cir. 2019) – A chapter 13 debtor sought to reopen her case so that she could move for imposition of contempt sanctions against a mortgagee based on its willful … Continue reading

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