There are typically several major Chapter 11 bankruptcy cases filed each year. Perhaps not in the news as much as its founder and namesake, The Weinstein Company (“TWC”) was in the public eye in 2018 as a result of its bankruptcy filing. Here is part three of a series briefly summarizing the more interesting cases from last year:
There are typically several major Chapter 11 bankruptcy cases filed each year. Originally filed in the spring of 2017, the case of Westinghouse Electric Co. (“Westinghouse”) made headlines in 2018 with its completion. This is part two of a brief summary of the more interesting recent cases:
There are typically several major Chapter 11 bankruptcy cases filed each year. Sears was one of the significant Chapter 11 cases filed in 2018. Toys R Us filed in 2017, but was in the public eye much of 2018 as it began the liquidation of its assets. Here is part one of a brief summary of the more interesting recent cases:
It is a fundamental policy of the State of California that any party engaging in a non-exempt loan transaction must comply with the state law that limits usury. In many cases, a party accused of usury defends a transaction’s usurious interest rate by asserting that the type of transaction is exempt or that the party’s status as a lending party makes it subject to a class-wide exemption. As to the latter, what entities are exempt from the California usury law?
A Chapter 11 bankruptcy may successfully allow a business to reorganize, survive, and move forward, even in a timely fashion. An example of which is the case of Houston-based Mattress Firm Inc. (“Mattress Firm”), which filed for relief under Chapter 11 less than three months ago on October 5, 2018. Just before the end of November, the company issued an announcement that it had completed its financial restructuring and emerged from Chapter 11. The late November announcement added that the process was completed in the expected time-frame of 45 to 60 days.
State usury laws differ significantly from state to state. “Usury is the exacting, taking or receiving of a greater rate than is allowed by law, for the use or loan of money.” O’Connor v. Televideo System, Inc. 218 Ca3rd 709, 713 (1990). It is a fundamental policy of the State of California that any party engaging in a non-exempt loan transaction must comply with the state law that limits usury. What are the elements of usury under California Law?
The U.S. Court of Appeals for the Ninth Circuit decided a case in early December of 2018 that decided the following question: when a borrower effectively rescinds a loan under TILA, but the lender takes no action to wind up the loan, when must a borrower file suit to enforce the rescission?
The California Residential Mortgage Lending Act (CRMLA) and the California Financing Law (CFLL), respectively in code sections Cal. Fin. Code §50318 and Cal. Fin. Code §22169, allow the state’s Commissioner of Business Oversight (“Commissioner “) to take action against licensees that violate California law, including provisions of the CRMLA and CFLL. These statutes grant the Commissioner the authority to suspend, bar or censure the licenses of any individual or entity, including residential mortgage lenders, residential mortgage loan servicers, and mortgage loan originators.
The California Department of Real Estate (DRE), pursuant to § 17520 of the state’s family law code, is precluded from issuing or renewing a full-term license if an applicant is on a list of persons, i.e., obligors, who have failed to comply with a court order to make child support payments. Section 17520 applies to finance lenders and to anyone registered to do business in the State of California. In fact, § 17520 of the California Family Code applies to anyone who engages in a business, occupation, or profession in California.
Under AB 3194, a recent bill signed into law by Governor Brown, builders should be able to more easily develop housing projects for low- and moderate-income households without interference from local governments. Another primary goal of the law is to make these types of housing projects more affordable for developers. Also, the bill’s legislative intent is for local governments to encourage urban infill rather than sprawling development into surrounding agricultural areas that may lack the infrastructure necessary for project completion.