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Home » Store » News » Bankruptcy Bill Clarifies Netting Enforceability, But Lessens Priority of Mortgage Payments

Bankruptcy Bill Clarifies Netting Enforceability, But Lessens Priority of Mortgage Payments

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Demonstrating its mixed benefits, bankruptcy reform legislation passed recently by the U.S. Senate would provide long-sought clarity to financial market participants in controlling and managing counterparty risks, but little comfort to lenders whose borrowers are filing for bankruptcy under Chapter 13 rather than Chapter 7. S. 256, the “Bankruptcy Abuse Prevention and Consumer Protection Act of 2005,” was approved 74 to 25 on March 10. A perennial legislative project that failed to reach completion…
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