When defendants Pethinaidu and Parameswari Veluchamy defaulted on their obligations to Bank of America in June 2009, the bank sued in federal district court for breach of contract, obtained judgment against the defendants 18 months later and began aggressively pursuing post-judgment enforcement remedies. What follows is a rare case eventually upheld in the Seventh Circuit Court of Appeals. ... read more

July/August 2011

The key point of this edition of Dispatches From the Trenches is to provide a friendly reminder that attachment is a cornerstone to a perfected security interest and that it is worthwhile to consider the requisite steps to attachment and their timing. Ken Weinberg reminds us that equipment lease forms need to be carefully worded so that the grant of the security interest occurs prior to acceptance in the event goods are not accepted before or simultaneously with delivery.... read more

June 2011

The filing of an involuntary bankruptcy petition by a creditor can be a very useful tool for a creditor to collect money from its recalcitrant debtor. But given some new cases, maybe a creditor should give the filing of an involuntary bankruptcy proceeding a second thought.... read more

June 2011

More and more, we hear news of the genuine risk of insolvency for some local governments, increasing the likelihood that some may seek relief under Chapter 9 of the Bankruptcy Code. Lesley Hawes’ article provides a general overview of Chapter 9 and its unique provisions applicable to municipal bankruptcies.... read more

May/June 2011

The last edition of Dispatches From the Trenches generally discussed what kind of property and transactions are, and are not, subject to Article 9 of the Uniform Commercial Code (UCC). This edition provides more detail on the various, highly defined collateral categories created by Article 9. ... read more

March/April 2011

Make no mistake, Andrew Alper warns, Perfection Land is not as perfect as the name suggests. In the following article, he provides clear direction and compelling case analysis aimed at helping lessors to avoid falling down a particularly expensive and time consuming rabbit hole.... read more

March/April 2011

In Ken Weinberg’s estimation, Article 9 of the Uniform Commercial Code is an extremely thoughtful and thorough statute. But, he warns, it’s not the end all, be all of security interests, and it is therefore prudent to visit what is and what isn’t covered by Article 9’s broad scope.... read more

January/February 2011

The Third Circuit’s decision in the case In re Philadelphia Newspapers concurs with a similar holding in the case In re Pacific Lumber Co. in which the Fifth Circuit upheld an order confirming a plan proposing to transfer collateral securing claims of the secured lenders free and clear of liens, paying the secured lenders in cash the value of their undersecured claims, and precluding the lenders from credit bidding. ... read more

January/February 2011

As 2011 brings a hopefully brighter outlook for the equipment leasing and financing sector, we asked a group of attorneys how they see the new year in terms of the state of the economy and its affect on litigation and bankruptcy as well as their predictions for the equipment leasing and financing industry as well as the banking industry. While there are signs for optimism after a number of hard years, our participants note that conservatism in lending, especially, will still reign.... read more

January/February 2011

Who knows what evil lurks in the hearts of men? When Equipment Finance was acquired by Sterling Financial in March 2002, the specialty lender was hailed as a “well managed company with exceptional profitability and sound credit quality.” What eventually developed was a drama fraught with deception and collusion that would lead to the collapse and subsequent sale of a $3.3 billion community bank six years later.... read more

January/February 2011

With Article 9 provisions changing and inconsistencies among the codes of various jurisdictions, maintaining a secure position can be a complex responsibility. Bottom line, secure positions are the lifeblood to an equipment lessor and an understanding of changing regulation is critical to success.... read more

January/February 2011

When it comes to co-borrowers and co-lessees, attorney Ken Weinberg returns to remind us that even if you call a duck a monkey, it’s still a duck. As such, lenders and lessors should proceed with caution when using these structures to avoid the potential for sticky situations down the road. ... read more

November/December 2010

In the world of second lien lending and seller “carry back” financing, it is not uncommon for the lenders to enter into subordination agreements whereby the second lien subordinates its lien and its right to collect payments or money to the first lien. Onerous standstill provisions in subordination agreements are less common but also not unusual in subordination agreements. ... read more

November/December 2010

The case of In re Gateway Ethanol, LLC provides an extended discussion of a sticky issue frequently encountered in bankruptcy or litigation: whether or not a lease is a true lease versus a lease intended as security. This recent case is now being cited as authoritative by many courts when looking at the true lease/lease intended as security dichotomy.... read more

October 2010

Uniform Commercial Code §9-311(a)(2) provides that the filing of a UCC financing statement does not perfect a lien that is governed by the state’s certificate of title law. Stepping out of the familiar and more-or-less uniform terrain of the UCC and into state title laws has proven perplexing, expensive and, in some cases, disastrous for motor vehicle lenders and lessors. ... read more

October 2010