Shareholder Chris Hawkins authored a case update titled, “Bankruptcy Court Finds Cross-Collateralization Provision in Separate Loan Transactions Valid and Effective (In re Porter),” published in the Commercial Finance Newsletter by Westlaw and in the Commercial Transactions Committee eBulletin by the California Lawyers Association (CLA). The Commercial Finance Newsletter is written by an ad hoc group of the California Lawyers Association (CLA) Business Law Section (BLS). Editorial contributions were made by the Hon. Meredith A. Jury (United States Bankruptcy Judge, C.D. Cal., Ret.) who is also a member of the ad hoc group.
In the article, Mr. Hawkins discusses the case In re Porter, 2020 WL 1860105 (Bankr. D. N.M., 2020) which addressed the validity of a cross-collateralization provision in multiple loans. The bankruptcy court found that the cross-collateralization provision in each of a debtor’s second and third loan agreements with a credit union was sufficient to render a vehicle–which was purchased by debtor and her spouse with a first loan from the credit union, and which secured this first loan– collateral for second and third loans.
To read the entire article, please click here.
Shareholder Chris Hawkins is the former managing partner of Sullivan Hill, serves on the firm’s executive committee, is a member of the Business Law Section of the CLA, and serves on the organization’s Commercial Transactions Committee. Mr. Hawkins practices in the Insolvency and Commercial Bankruptcy, Business Transactions, and Commercial and Business Litigation practice groups. Within these practice areas, he represents a variety of corporate debtors, bankruptcy trustees, receivers, banks, trade creditors, asset purchasers and other parties in interest in all aspects of commercial insolvency, including bankruptcies, receiverships, and assignments for the benefit of creditors. He also represents clients with non-insolvency financial matters in both the transaction and litigation contexts.
About Sullivan Hill:
Sullivan Hill has provided efficient, aggressive, and responsive legal representation for more than 50 years. The firm provides full service representation to clients in a variety of industries with an emphasis in insolvency, construction disputes, insurance coverage, real estate, business disputes, civil litigation, and transactional work. The firm has offices in San Diego and Las Vegas.