Sums received in settlement of borrower’s claims for improper construction are subject to the lien of the deed of trust encumbering the improperly built property and so must be paid to the lender, not the borrower’s bankruptcy trustee. Read More
In context of imposing a cramdown plan in the bankruptcy reorganization of a debtor who had obtained a HUD loan to build an affordable housing project, the bankruptcy court should have valued HUD’s claim as whatever the property would ordinarily be worth absent any restriction for use as affordable housing (even though the debtor ultimately intended to continue with the… Read More
A bankruptcy court applied the wrong test in determining whether interest payable on an oversecured creditor’s claim between the petition filing date and plan approval date should be paid at the loan’s default interest rate. Read More
A bankruptcy appellate panel is not a court established by an Act of Congress and so cannot issue a writ of mandate under the All Writs Act. Read More
