Iowa Supreme Court Decides Notable Loan Participation Case
LexisNexis (March 20, 2017, 12:42 PM EDT) -- In a recent decision, the Iowa Supreme Court considered what happens to the interests of participants in a loan when, as part of a Purchase and Assumption Agreement prior to the liquidation of the lead bank, the lead bank sells collateral surrendered voluntarily by the borrower. The Iowa court ultimately ruled that the participation agreements were "true sales", not secured loans.
The Iowa case. In Central Bank et al. v. Timothy C. Hogan, as Trustee of the Liberty Bank Liquidating Trust, et al., 2017 Iowa Sup....