California Court Does not allow Creditor of a Failed Bank to reach Collateral transferred by FDIC
Landlord (L) required Alliance Bank (T) to put up a standby letter of credit (SLC) as security for the lease. T obtained SLC from Union Bank by putting up $500K cash deposit. T failed and was turned over to FDIC for receivership. FDIC disaffirmed lease. L attempted to go after $500K held as pledge for SLC. Held: L may not seize collateral behind SLC, because that would interfere with FDIC's attempts to wind up a failed bank.
Contributor
About
I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.
I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.
Categories
- Articles 313
- Bankruptcy 44
- Business 135
- Cases & Codes 68
- Contracts 27
- Criminal Law 122
- Employment 24
- Expert Reports 3
- Expert Witness 34
- Family Law 58
- Form Letters 15
- Immigration 3
- Intellectual Prop 32
- Internet Law 10
- Law Practice 99
- Law School 2
- Legal Research 19
- Litigation 186
- Miscellaneous 64
- PR Web 41689
- Personal Injury 609
- Press Release 43
- Probate 54
- Real Estate 68
- Tax Law 23
- Workers Comp 4