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Buyer (and Lender) Beware! Court Rules Bank May Have Acted as Financial Advisor and Wrongfully Refused to Fund All Phases of Condominium Project

A California federal court has held that a lender may have acted as a financial adviser, subjecting itself to certain fiduciary duties to the borrower, and wrongfully refused to fund all phases of the borrower’s condominium project thereafter.  Read more here.

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Automobile Ownership Cost Determination Under the Means Test in Bankruptcy

In her first opinion on the United States Supreme Court, Justice Elena Kagan reports the Justices’ 8-1 ruling that a consumer debtor cannot deduct the IRS standard automobile ownership costs from his or her disposable monthly income under the means test if the automobile is free and clear.  Read more here.

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Be Careful What You Wish For: Automatic Acceleration Upon Bankruptcy Prevented Collection of Prepayment Premium

A Mississippi bankruptcy court has ruled that when a promissory note provides for automatic acceleration triggered by the borrower’s bankruptcy, under New York law oversecured noteholders cannot collect a prepayment premium. In re Premier Entertainment Biloxi, LLC, 445 B.R. 582 (Bankr. S.D.Miss. 2010). The ruling had significant financial consequences for the lenders, and although the […]

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“Me First!” California Appellate Court Rules Two Liens Recorded Simultaneously Have Equal Priority

In First Bank v. East West Bank, 2011 Westlaw 4908756 (Cal.App.), California’s Second District Court of Appeal ruled that two deeds of trust against real property marked “recorded” at exactly the same moment have equal priority, notwithstanding the fact that one was indexed first.  Read more here.

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Changing the Light at the End of the Tunnel: Distressed Financing Roundtable

Check out Reno Fernandez‘ article in the Bar Association of San Francisco’s Bulletin on the Distressed Financing Roundtable.  Read the article here, and view the video here.  Former BNI member John Seeley of Acrius Capital was a featured speaker.

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Modifying Liens in Bankruptcy

In Wells Fargo Bank, N.A. v. Texas Grand Prairie Hotel Realty, LLC, No. 11-11109 (5th Cir. Mar. 1, 2013), the United States  Court of Appeals for the Fifth Circuit ruled that the “Till” approach is not mandatory in determining the cramdown rate in a chapter 11 bankruptcy case.  Read more here.

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Improper Punctuation Prevents Perfection

In In re C. W. Mining Co., 2013 WL 888677 (D. Utah 2013), the district court of Utah held that a UCC-1 Financing Statement that omitted periods after initials in the debtor’s name was unperfected and could be avoided under Bankruptcy Code Section 544.  Read more here.

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Assignee of Sold Out Junior Could Not Sue Borrower Upon Fraud Claim Not Specifically Assigned

In Heritage Pacific Financial, LLC v. Monroy, 2013 Westlaw 1779278 (Cal.App.), the court held that the assignee of a sold out junior lienholder could not sue the borrower upon a fraud claim not specifically identified and assigned.  Read more here.

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Contractor’s Withdrawal Liability for Unpaid Pension Contributions Dischargeable in Bankruptcy

In Carpenters Pension Trust Fund for Northern California v. Moxley, 13 C.D.O.S. 9503, No. 11-16133 (9th Cir. August 20, 2013), the United States Court of Appeals for the Ninth Circuit ruled that a construction contractor’s withdrawal liability for unpaid pension fund contributions is dischargeable in bankruptcy.  Read more here.

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IRS Penalties for Late Filed Corporate Tax Returns are Not Administrative Expenses

The Ninth Circuit Bankruptcy Appellate Panel has ruled that penalties imposed by the Internal Revenue Service for untimely filing corporate tax returns were not administrative expenses in bankruptcy.  Read more here.

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Winding Up and Dissolving a Nonprofit Corporation

This article discusses the basic steps to wind up and dissolve a nonprofit public benefit corporation under California law.  Although this background is helpful, it is not a substitute for retaining competent counsel to assist with the analysis of alternatives and the preparation of the required resolutions, minutes, forms, notices and letters.  This article does […]

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Bank of America Fined $10,000 Per Month for Violations of Discharge Injunction

Bank of America was fined $10,000 per month for violations of the discharge injunction in bankruptcy.  Read about it here.

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Follow us on Facebook!

Follow Macdonald Fernandez LLP on Facebook at https://www.facebook.com/macdonaldfernandez.

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The Current Chapter 15 Landscape and International Insolvency

Four recent cases shape the current landscape of international insolvency practice under Chapter 15 of the Bankruptcy Code.  Read about them here.

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Reno Fernandez Recognized by Bar Association of San Francisco for National Volunteer Week

On April 13, 2015, the Bar Association of San Francisco recognized Reno Fernandez in honor of National Volunteer Week for his work as chair of the Commercial Law and Bankruptcy Section, an arm of the bar association dedicated to continuing legal education of the bankruptcy bar. Read more here.

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Under Washington Law, Marriage Establishes No Express or Technical Trust With Respect to the Exception from Discharge Provided in Bankruptcy Code Section 523(a)(4)

In In re Mele, 13 C.D.O.S. 12737, No. WW-13-1173-DTaKu (November 25, 2013), the Bankruptcy Appellate Panel of the United States Court of Appeals for the Ninth Circuit held that a property allocation judgment arising from marital dissolution proceedings in Washington is dischargeable in a chapter 13 case notwithstanding Bankruptcy Code Section 523(a)(4), which excepts from […]

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California Law Bars Nondischargeability Action by Sold Out Junior on Purchase Money Residential Loan Under $150,000 Notwithstanding Fraud

In Heritage Pacific Financial, LLC v. Montano (In re Montano), 13 C.D.O.S. 12820, NC-12-1579-PaDJu (9th Cir. BAP November 27, 2013), the Bankruptcy Appellate Panel of the United States Court of Appeals for the Ninth Circuit ruled that California’s statutory one-action rule and anti-deficiency judgment scheme barred an action under Bankruptcy Code Section 523(a)(2)(B) brought by […]

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Cocktail Party Mixer

[ March 27, 2015; 6:00 pm to 9:00 pm. ] It’s the first BNI Embarcadero Social of 2015!

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Foreclosure After Abandonment but Before Closure of Bankruptcy Case Violated Automatic Stay

In In re Gasprom, 500 B.R. 598 (9thCir. BAP 2013), the Bankruptcy Appellate Panel of the United States Court of Appeals for the Ninth Circuit held that a lienholder violated the automatic stay in bankruptcy by foreclosing on assets abandoned by the trustee before the corporate debtor’s chapter 7 case was closed.  Read more here.

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Business Bankruptcy Basics

If you are interested in learning about business bankruptcy and also earning CLE credit, check out this video, available here.  The video gives you CLE credit valid in ten states, including California.  I believe the provider, namely LexVid, gives you one video for free.  Enjoy!

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Follow Reno Fernandez on LinkedIn!

Follow Reno Fernandez on LinkedIn here:  https://www.linkedin.com/in/renofernandez/

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Judgment Liens in California

Quick note on judgment liens in California:
In California, a judgment lien against real property generally remains in effect until 10 years from the date of entry of the judgment, unless the judgment is earlier satisfied or the lien is released. Cal. Civ. Code § 697.310(b); FDIC v. Charlton, 17 Cal. App. 4th 1066, 1069 (1993).  […]

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Reno Fernandez Featured in BASF Bulletin

Reno Fernandez was featured in the January issue of the Bulletin, the monthly newspaper of the Bar Association of San Francisco.  You can view the article here.

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Chapter 11 Bankruptcy in a Nutshell

Reno Fernandez spoke on this panel for the 2014 California State Bar Annual Meeting entitled “Chapter 11 in a Nutshell.”  The video is now available here.
Viewers earn one hour of MCLE credit as well as one hour of Legal Specialization in Bankruptcy Law credit.
This program will take the mystery and confusion out of the Chapter […]

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Insurer Cannot Attach Social Security Benefits or Proceeds to Enforce Disability Overpayment Agreement Under ERISA

In Bilyeu v. Morgan Stanley, 683 F.3d 1083 (9th Cir. 2012), the United States Court of Appeals for the Ninth Circuit rules that an insurer cannot impose a lien upon the proceeds of Social Security benefits in the possession of the insured in order to recover overpayment of long-term disability benefits.  Read more here.

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