The portfolio contains eight notes in the first lien position
, in addition to one subordinate note.
Financial assistance is limited to aid for mortgage financing with a first lien position
Equitable subordination provides bankruptcy courts with the authority to place the first lien position of a self-enriching secured creditor in an inferior position to that of other secured or unsecured creditors.
In May 2009, in Yellowstone, a Bankruptcy Court for the District of Montana subordinated the $232 million secured first lien position of Credit Suisse Group AG (Credit Suisse) on a luxurious ski resort to that of its unsecured creditors because Credit Suisse's commercial loan was so "overreaching and self-serving that they shocked the conscience of the court.
Indeed, any such requirement or prohibition would be wholly inconsistent with the court's repeated and unqualified declarations that, regardless of the refinancing lender's ignorance or mistake, equitable subrogation will be permitted to the extent it works no prejudice to the rights of the intervening lien holder--a party who never anticipated taking a first lien position
The title company must make certain that the new lender will be in a first lien position
, and diligently examine the short sale transaction to make sure all steps are followed.
They said would have to be in first lien position
, if it could be done at all.
The assets are primarily first lien positions
, and there are also 4 REO assets.