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Florida Banking Law Blog Legal developments impacting banking, finance and loan enforcement in Florida

Jacob Payne

Jacob Payne joined Rogers Towers in October 2006 as an associate in the commercial litigation department. Mr. Payne's practice focuses on representing financial institutions in litigation, including lender liability defense, bankruptcy, and post-judgment collections. He has assisted secured lenders in obtaining non-consensual relief from the automatic stay in large commercial bankruptcy cases, obtaining summary judgment or dismissals in lender liability actions, and securing settlements resulting in significant collections on judgments against guarantors.

Posts by Jacob Payne

Caveat Charities: Disgorging Donations as Fraudulent Transfers

Posted in Bankruptcy

The Bankruptcy Code permits a trustee to avoid transfers of property that a debtor has made within two years prior to its bankruptcy filing. In 1998, Congress added a safe-harbor provision for contributions to qualified religious or charitable organizations which prevents the trustee from avoiding the transfer so long as (1) “the amount of that… Continue Reading

Collecting Deficiency on Wholly-Unsecured Nonrecourse Loan (in Chapter 11)

Posted in Bankruptcy, Debt and Judgment Collection

Some of you who read the title of this post may have done a quick double-take, as it is well established that lenders may not collect a deficiency on a nonrecourse loan under state law. However, the Bankruptcy Code provides some relief to a holder of a wholly unsecured nonrecourse loan when the debtor files… Continue Reading

Safe-Harbor Provisions for Association Assessments — “First Mortgagee” Must Take Title

Posted in Residential Foreclosure

The Florida Statutes provide that the subsequent owner of a condo unit or home subject to a homeowner’s association is liable for the assessments of the previous owner that remain unpaid at the time of taking title. Fortunately for lenders, the statutes carve out “safe harbors” for first mortgagees who take title through foreclosure or… Continue Reading

Dismissal for Failure to Prosecute: Debtor’s Bankruptcy Appeal Tossed for Delay by Eleventh Circuit

Posted in Bankruptcy, Debt and Judgment Collection, Student Loans

As creditors’ counsel, we have often faced debtors who file bankruptcy simply to delay and frustrate the collection process.  A recent case out of the Eleventh Circuit typifies the no-nonsense attitude that bankruptcy and appellate judges take with debtors who attempt to use the Bankruptcy Code as a vehicle for delay. In 2009 a pro… Continue Reading

Commencing Proceedings Supplementary to Recover Fraudulent Transfers

Posted in Debt and Judgment Collection

Proceedings supplementary are intended to be a speedy and relatively inexpensive means by which a judgment creditor can recover fraudulent transfers from third parties. Unlike conventional suits, proceedings supplementary do not have rigorous procedural rules that must be followed. Instead, proceedings supplementary offer a flexible structure, with the due process requirements of notice and opportunity… Continue Reading

Radlax

Posted in Bankruptcy, Debt and Judgment Collection

Can a Chapter 11 debtor propose a plan to sell a lender’s collateral free and clear of the lender’s lien without allowing the lender to credit bid? The Supreme Court says “no”—unless there’s cause. There are three ways for a debtor to confirm a plan without the affirmative vote of a secured creditor: (1) the… Continue Reading

New Equity Auctions

Posted in Bankruptcy, Special Assets Litigation

Seventh Circuit holds that new equity in a Chapter 11 debtor must be auctioned…and that a creditor may credit bid. In a Chapter 11 bankruptcy, if the debtor’s owners want to continue to own the debtor after confirmation, they must (1) pay the unsecured creditors in full; or (2) get the consent of the unsecured… Continue Reading

Using Contempt Power to Force Repatriation of Offshore Trust Assets

Posted in Bankruptcy, Special Assets Litigation

Offshore asset protection trusts (OAPT) typically have the following characteristics: (1) the trust is governed by the laws of a foreign jurisdiction that does not recognize the judgments or orders of courts of the United States; (2) the trustee is a foreign entity that cannot be sued in the United States because it lacks sufficient… Continue Reading