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In This Issue
2019 Fall Annual Meeting and Education Conference
October 17 & 18, 2019

Grand Hyatt New York
Park Avenue at Grand Central Station
109 E. 42nd St.
New York, NY 10017

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ACIC Private Notes                     September  2019

Welcome to fall and to the September 2019 issue of the ACIC Private Notes! The 2019 ACIC Fall Annual Meeting and Education Conference is just around the corner, and we look forward to seeing many of you there!
This issue brings you:
  • An article by Chiraag Kumar (MetLife) summarizing some key take-away points for investors from the ongoing bankruptcy proceedings of Pacific Gas and Electric;
  • The bi-annual edition of the ACIC Committee Reports, courtesy of Mikhel Schecter (Paul Weiss); and
  • Recent case law summaries from the New England Region, contributed by Kevin Braun (Morgan Lewis), and from the Southern Region, provided by Jeff Dutson (King & Spalding).

In Memoriam

Gary Benanav regretfully passed away on August 25, 2019.  Gary had a remarkable career, was one of the founders of the College, and will be dearly missed by all who knew him.  Click here to read Gary's obituary.

Key Take Aways from Pacific Gas and Electric Bankruptcy Proceedings

While Pacific Gas and Electric's bankruptcy proceedings are still on-going, investors have already learned new lessons, or been reminded as to the importance of old lessons, in diligencing and de-risking their infrastructure financings.  Click here to learn more about the effect that this bankruptcy has had on investors' credit processes.

Committee Reports

Thank you to the members of the ACIC's Committees for their ongoing efforts to keep the College educational, accessible, entertaining, and a place to build great relationships while staying up to date on pertinent issues. Click here to learn more about the mandate of each the ACIC's Committees, where you can get involved, and a few projects that the TPMC has on the horizon!

Recent Case Law Summaries

New England

In Forty Pine, LLC v. Country Bank for Savings, the appeals court held that a holder of a note cannot charge a prepayment premium upon acceleration unless the note clearly provides for it. Click here to learn more.
In Ion Bank v. J.C.C. Custom Homes, a lender who assigned its interest in a note prior to filing replevin action for collateral securing the note had its action dismissed for lack of standing despite attempted substitution as assignee as plaintiff. Click here to learn more.
In KLP Enterprises, LLC v. Sassani, the court held that waiver of jury trial provision in a loan agreement did not apply to tortious interference with contractual relations claim despite broad jury trial waiver provision. Click here to learn more.

In In re Lexi Development Company, Inc. , no damages were found where failure to deliver notice of default was not proximate cause of a lender's claimed damages and the lender failed to take steps to mitigate losses. Click here to learn more.
In Gulf Coast Hospice LLC v. LHC Group Inc., the court held that a letter of intent communicating intent not to be bound until execution of final acquisition documents precluded formation of a binding contract of sale, notwithstanding the words, actions and performance of the parties. Click here to learn more.
In Durham Commercial Capital Corp. v. Ocwen Loan Servicing, LLC , the Eleventh Circuit held that New York UCC provision does not give rise to a private right of action to a secured party that was not an assignee of an account.   Click here to learn more.
In re James Alexander Mason, Jr ., a debtor's pledge of his partnership interest was unenforceable under Delaware law and the proof of secured claim filed by the creditor was disallowed when the North Carolina court looked beyond the security agreement's choice of law provision and to the local law of the state of incorporation. Click here to learn more.
In In re Waste Tech, the court found that a creditor did not have a perfected security interest in a debtor's property when it filed a UCC-1 Financing Statement which listed inaccurate identifying information for the debtor and did not adequately describe the collateral. Click here to learn more.