Showing posts with label Secured Transactions. Show all posts
Showing posts with label Secured Transactions. Show all posts

First Circuit: Puerto Rico Farm Credit, ACA v. Eco-Parque del Tanama Corp.

Statute requires that the lender attempt a restructuring of the loan obligations only where the restructuring ultimately proves less costly than foreclosure; borrower's inability to demonstrate means for a satisfactory repayment removed the requirement.

Under the statute, a lender must consider the restructuring plan's credibility and viability, and need not accept a plan that the counterparty can't perform.

Putting forward a credible plan for restructuring is a threshold requirement for challenging the lender's estimated foreclosure costs.

Puerto Rico Farm Credit, ACA v. Eco-Parque del Tanama Corp.