The LSTA this week, joined by the Commercial Finance Association, filed an amicus brief in a case of great importance to the loan market, In re TOUSA. At issue is whether a bankruptcy court can violate the four corners of the bankruptcy code (in this case, in the context of a remedy for a fraudulent transfer) on the basis of the court’s “equitable powers”. The LSTA believes the answer is no. In 2005, TOUSA, Inc. – a national homebuilder – created a joint venture funded in part by secured loans from the “Transeastern Lenders”.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.