Secured TransactionsBarbara M. Goodstein, New York Law Journal
The Central Bank Case: Trusting in True Sales of Participations
In her Secured Transactions column, Barbara M. Goodstein writes: When do loan participation agreements transfer the actual property rights of the originating creditor versus merely a contractual right against the counterparty to proceeds of that property? That question was the subject of a decision earlier this year. Though not groundbreaking, the case provides a thoughtful discussion on this subject, an interesting emphasis on "trust" language, and an opportunity to re-visit current thinking of courts on the issue of when participations are true sales of loan interests.
This premium content is reserved for New York Law Journal subscribers.
Continue reading by getting started with a subscription.
Already a subscriber? Log in now