Financial institutions and bankruptcy law: 1991 judical developments

Familiarity with the law of equitable subordination (Bankruptcy Code Section 510) and the subsequent sensitizing of lending policies toward it, is essential for a bank to avoid its costly consequences. The law allows a creditor's claim to be subordinated to other claims in a bankruptcy hearing...

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Bibliographic Details
Published in:Bottomline (Washington, D.C. : 1983) D.C. : 1983), 1991-09, Vol.8 (5), p.32
Main Authors: Bantleon, David F, Kresch, Kathy L
Format: Article
Language:English
Subjects:
Banking law
Bankruptcy
Bankruptcy laws
Collateral
Default
Financial institutions
Future of banking
Liquidation
Loan Policies
Loan workouts
National Bankruptcy Act
Personal Lines Of Credit
Problem Loans
Secured loans
State court decisions
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Summary:Familiarity with the law of equitable subordination (Bankruptcy Code Section 510) and the subsequent sensitizing of lending policies toward it, is essential for a bank to avoid its costly consequences. The law allows a creditor's claim to be subordinated to other claims in a bankruptcy hearing if: the creditor is engaged in inequitable conduct; inequitable conduct gave the creditor unfair advantage or injured the debtor, other creditors or the estate; or the subordination is consistent with the purposes of the Bankruptcy Code.
ISSN:0740-5464