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New Cases For the Week of October 22, 2001 -
October 26, 2001
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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October 23, 2001
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Case
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Court
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Holding
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In
re Autostyle Plastics
(DBN Subscription Required) |
6th
Cir. |
A
secured creditor's claim that the liens of participants in a
participation agreement were void because of the absence of
separate security agreements for each participant was
wholly without merit. The U.C.C. does not require participants
to obtain separate security agreements or to file separate
financing statements, nor does the U.C.C. require a lead
lender's financing statement to identify participants in the
underlying loan.
Nor did the bankruptcy court err in finding
that the participants claims could not be equitably
subordinated or recharacterized as equity. |
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