Chapter 12 DIP avoids landlord’s lien on crops
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.
Credit card balance transfers: The new preference in town
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
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
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?
Federal income taxes in bankruptcy
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
First District rules on property of multiple payee endorsement
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
Revisiting real estate taxes in bankruptcy
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
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?)
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.