The phrase ipso facto is Latin for “by the fact itself.” Ipso facto clauses are sometimes included in lease and purchase contracts, and they assert that if the lessee or purchaser becomes insolvent, or files for bankruptcy protection, then the contract has been breached. In other words, under such a clause the very act of filing for bankruptcy protection constitutes a breach of contract that absolves the other party of any further contract obligations.
Such clauses are not valid in bankruptcy; lessors and sellers that may become creditors in a bankruptcy down the line should proceed with caution.
The Bankruptcy Code was made pursuant to Congress’ Constitutional power under Article I, § 8, which provides, in pertinent part:
The Congress shall have power to establish uniform laws on the subject of bankruptcies throughout the United States.
In this regard, Article VI of the Constitution provides:
This Constitution, and the laws of the United States which shall be made in pursuance thereof shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any state to the contrary notwithstanding.
Read More from: Insolvency Insights
CariClub crunches employee data to connect young banking professionals with nonprofits on the hunt for junior directors.
Arguments that the central bank should develop its own system for faster payments ignore current market realities, says The Clearing House, which has developed its own network.
On March 27, 2019, Justice Breyer, writing for a six-Justice majority of the Supreme Court, issued a decision in Lorenzo v. SEC, 139 S. Ct. 1094 (2019), holding that one who knowingly distributes a material misstatement can be held liable under Rule 10b-5(a) and (c). The decision is noteworthy for its arguable tension with Janus … Continue reading
The post SCOTUS Opens Door to Potential Expansion of Rule 10b-5 Liability for Misstatements appeared first on Robins Kaplan Trial Attorneys Blog.
Read More from: The Robins Kaplan Bankruptcy Blog
The Pittsburgh company more than doubled its provision for loan losses during the first quarter to keep pace with growth in its loan portfolio.
In the MeToo era, financial firms the world over are struggling to handle complaints of sexual harassment. A case in point: HSBC.
Wells Fargo & Co. investors who stuck with the bank through a bumpy few months are being rewarded with the best first quarter in five years.
Bank's profits grow 5% on earnings growth; Citi's number 2 exec retirement shows the difficulty retaining a host of top executives.
The Fed may have stopped raising borrowing costs for now, but the biggest U.S. bank is still reaping benefits from higher interest rates.
Following our 2016 article, the Court of Appeal has upheld the decision of the High Court that dividends are liable to challenge as transactions defrauding creditors under section 423 of the Insolvency Act 1986 (the “IA”).
Read More from: eSQUIRE Global Crossings
Readers respond to this week's big-bank CEO hearing before the House, weigh the debate over Community Reinvestment Act reform, consider whether Wells Fargo needs a new brand and more.
In a roundtable discussion, the heads of four banks called on Congress to move on CRA modernization and address the cannabis conundrum, while dismissing arguments that midsize banks need to merge to stay competitive.
President Trump’s Executive Order yesterday on energy infrastructure and economic growth contained an unexpected Section 5 entitled “Environment, Social and Governance Issues; Proxy Firms and Financing Energy Projects Through the United States Capital Markets.” While the section does not directly address environmental, social and governance (ESG) disclosure, it restates the definition of materiality from the U.S. Supreme Court case, TSC Industries, Inc. v. Northway, Inc., and reiterates a company’s fiduciary duties to its shareholders to strive to maximize shareholder return, consistent with the long-term growth of the company. This order comes on the heels of last week’s U.S. Senate Committee on Banking, Housing, and Urban Affairs hearing on ESG Principles in Investing and the Role of Asset Managers, Proxy Advisors and Other Intermediaries, as well as ongoing activity at the U.S.
Read More from: Davis Polk Briefing: Governance
Organizers of the Bank of St. George have filed an application with the FDIC and state regulators and plan a public stock offering.
More consumers were late in paying two major types of loans in the latest figures from the American Bankers Association, but it appears to be a relatively isolated problem.
Tax day approaches. Only a few days remain to make an important decision.
You expect to live for decades after you’re eligible for Social Security, don’t you?
Then, you have only until April 15th to use the 2018 allowance for contributions to a tax-advantaged IRA.
Miss making that 2018 contribution and it’s gone for all time.
So, you miss out on that contribution growing, tax free, until you withdraw it. You miss the miracle of tax-free compound-interest.
Do you really want to miss this opportunity?
For reasons that I’m sure made (some) sense at the time, Congress capped how much you can contribute to your IRA each year.
Read More from: The Soap Box
The Trump administration directed independent agencies to submit their pending guidance for review by the Office of Information and Regulatory Affairs, a novel procedural hurdle that could slow down policy changes.
New York's former banking superintendent will spend much of the next three months advising fintech startups on how to cope with regulators.
Cryptocurrency exchange Bittrex is protesting New York's decision this week to deny it a virtual license exchange, claiming that its rationale contains factual errors and its personnel were not well versed in blockchain.
A fourth Senate Republican said he'd vote against businessman Herman Cain joining the Federal Reserve Board, all but sinking any chances that he'd get through the confirmation process if Democrats stay united in their opposition.