1999 Articles

Central and Southern District bankruptcy courts hold federal income tax “earned income credits” are exempt assets By Jeffrey D. Richardson January 1999 Income refunds have always been a source of recovery for trustees in administering bankruptcy cases.
Chapter 12 DIP avoids landlord’s lien on crops By Jeffrey D. Richardson December 1999 The United States Bankruptcy Court for the Southern District of Illinois has held that a Chapter 12 Debtor-in-Possession can use the lien avoidance powers granted a trustee to avoid the landlord's crop lien granted by Illinois statute in 735 ILCS 5/9-316.
Confidentiality of bank examination information expanded By Jerry D. Cavanaugh & Bradley W. Small December 1999 Recent legislation signed by Governor Ryan (Senate Bill 447; Public Act 91-201), effective January 1, 2000, expands certain confidentiality provisions protecting Illinois banks and their customers.
Credit card balance transfers: The new preference in town By Gary T. Rafool April 1999 Along with the expansion in the number of credit cards issued, and the competition for customers, credit card issuers have in recent years begun encouraging card holders to transfer the balances from other credit cards to the issuer's card.
The duty of a bank customer to discover and report unauthorized signatures is prerequisite to suit By Timothy J. Howard January 1999 On June 1, 1998, the First District Appellate Court held that section 4-406(f) of the revised Illinois Uniform Commercial Code (hereinafter "UCC") requires a bank customer to notify its bank of unauthorized signature or alteration of an instrument within a year of the bank statement or items being made available to the customer in order for the customer to preserve its right to bring suit against the bank.
Enforceability of loan documents executed by a dissolved corporation By Karen A. White January 1999 While certainly many, if not all, lenders have set procedures to follow when lending money to a corporation which includes obtaining a Certificate of Good Standing, what happens if the procedure is not followed and a loan is given to a dissolved corporation?
Ex-Im bank: Access to trade finance By Paul Dubrin October 1999 Exporting is a fundamental part of doing business for growing numbers of U.S. companies.
Federal income taxes in bankruptcy By John B. Truskowski February 1999 How federal income taxes are handled in bankruptcy is unclear to most practitioners, including those concentrating in taxation, who do not practice in the bankruptcy area
Filing tax return may be nullity when trying to discharge tax debt By Michael J. Chmiel & Michael S. Drella April 1999 One of the largest misconceptions surrounding the dischargability of debt in bankruptcy is the common belief that income tax debts owed to the Internal Revenue Service (the "IRS") or the state equivalent are nondischargeable.
First District rules on property of multiple payee endorsement By David J. Dubicki April 1999 In Meng v. Maywood Proviso State Bank, 234 Ill.Dec. 92, 702 N.E.2d 258 (1st Dist. 1998), the Illinois Appellate Court analyzed, for the first time, 3-110(d) of the Uniform Commercial Code (code) (810 ILCS 5/3-110(d)) (effective January 1, 1992) which applies to instruments payable to two or more persons
Income tax treatment of state and federal grants By Don Johnson October 1999 Various state and federal agencies make grants of funds to both public and private corporations for economic development, improvement of public facilities and related purposes
Individual held personally liable for corporation’s failing to comply with statutory formalities By Loren R. Stone & A. Jay Goldstein October 1999 In a recent decision, the Illinois Appellate Court has held that a corporation's failure to comply with filing requirements of the Business Corporation Act regarding the adoption and use of assumed names, will subject an individual to personal liability for breach of contract.
Revisiting real estate taxes in bankruptcy By Timothy E. Moran February 1999 Jurisdiction for the bankruptcy court to review and revise prior years' (pre-petition) tax liabilities, including ad valorem real estate taxes, derives from section 505 of the Bankruptcy Code (11 USC section 505).
SBA 504: The expansion program By Karen Lennon & Lewis F. Matuszewich April 1999 In the Chicago area, the SBA 504 loan program is the fastest growing financing option for expanding businesses.
U.S. Supreme Court rules on new value (or does it?) By John C. Murray December 1999 In an 8-1 opinion issued on May 3, 1999, the U.S. Supreme Court held in Bank of America National Trust & Savings Association v. 203 N. LaSalle Street Partnership, ___U.S.___, 119 S.Ct. 1141 (1999), that old equity holders were disqualified from participating in a "new value" bankruptcy reorganization plan over the objection of a senior class of impaired creditors, where the opportunity to contribute new capital and receive ownership interests in the reorganized entity was given exclusively to old equity holders without consideration of alternatives.
Y2K—The Year 2000 computer crisis for the attorney providing business advice By Michael H. Erde January 1999 With the Millennium approaching, much has been written about what is called the pending "Y2K," or Year 2000, computer crisis.