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In this article, published in The Bankruptcy Strategist, Loeb & Loeb partner William Hawkins examines the decision In re Soho 25 Retail, LLC, No. Adv. 11-1286-SHL, Bkr. 10-15114-SHL, 2011 WL 1333084 (Bankr. S.D.N.Y. Mar. 31, 2011). The holding in this important case supports the relatively new theory that New York law permits a mortgagor to transfer its entire interest in rents to a mortgagee upon executing the mortgage, such that the transfer will remain effective in the mortgagor’s eventual bankruptcy.
William Hawkins is a partner in the Bankruptcy, Restructuring and Creditors' Rights Group and is based in the New York office of Loeb & Loeb. He can be reached at 212.407.4126.
This article was published in the September 2011, Volume 28, Number 11 edition of The Bankruptcy Strategist. Permission for article reprint has been granted.