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Third Circuit Issues an Important Decision on Liquidation of Repo ‘Credit Enhancements’

Appeals court upholds finding that the mortgage securities market in 2007 was declining, not dysfunctional.
Court: 

District Judge Rules Section 562 Does Not Apply to Terminations by Agreement

Section 562 applies to fix the date for calculating damages only if the debtor rejects or the creditor terminates, New York district judge says.

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