wordpress-themes.org wordpress themes wordpress themes

September, 2014

SECURED CLAIMS IN BANKRUPTCY: ON THE DESIGN OF PARTIAL-PRIORITY RULES 3

Furthermore, under all three of the partial priority rules we consider, a secured creditor would continue to enjoy full priority in its collateral over the claims of subsequent secured creditors, transferees, nonordinary course purchasers, and unsecured creditors that had consented …Continue reading →

SECURED CLAIMS IN BANKRUPTCY: ON THE DESIGN OF PARTIAL-PRIORITY RULES 2

The three partial priority rules can be summarized as follows: Under the “fixed-fraction priority rule,” a fixed fraction of the collateral backing secured claims would be made available to pay the claims of unsecured creditors. The “adjustable-priority rule” accords secured …Continue reading →

SECURED CLAIMS IN BANKRUPTCY: ON THE DESIGN OF PARTIAL-PRIORITY RULES

Funding of Marginal Activities So far we have discussed three efficiency costs of foil priority: (1) in loan transactions that will go through in any event, foil priority may cause a borrower to incorporate a security interest into the arrangement …Continue reading →

SECURED CLAIMS IN BANKRUPTCY: Reduced Use of Covenants 5

Under the rule of full priority, however, the borrower may give the creditor a security interest that protects the value of the creditor’s loan from the dilutory effect of tort claims. Consequently, if the creditor is given a security interest, …Continue reading →

SECURED CLAIMS IN BANKRUPTCY: Reduced Use of Covenants 4

Thus, even if the creditor and borrower did not include any covenants in the loan agreement other than a default clause, the rule of full priority, by tending to insulate the creditor from the effects of the borrower’s collapse, does …Continue reading →