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Full-Text Articles in Law
Of Hotel Revenues, Rents, And Formalism In The Bankruptcy Courts: Implications For Reforming Commercial Real Estate Finance, R. Wilson Freyermuth
Of Hotel Revenues, Rents, And Formalism In The Bankruptcy Courts: Implications For Reforming Commercial Real Estate Finance, R. Wilson Freyermuth
Faculty Publications
This article is intended to continue the dialogue begun by the proposed Restatement and has two distinct goals in this effort. Parts I through III argue that the position of the Restatement drafters is both legally and functionally sound and that bankruptcy courts should embrace and apply the proposed Restatement in administering distressed real estate developments. Part I reviews the reasoning articulated in the hotel bankruptcy cases, demonstrating how courts have applied the provisions of the Bankruptcy Code and state law in a formalistic manner to extinguish the hotel mortgagee's lien upon postpetition room revenues. Part II rejects the analysis …
California Code Of Civil Procedure Section 580b Revisited: Freedom Of Contract In Real Estate Purchase Agreements, Jamie O. Harris
California Code Of Civil Procedure Section 580b Revisited: Freedom Of Contract In Real Estate Purchase Agreements, Jamie O. Harris
San Diego Law Review
Section 580b of the California Code of Civil Procedure makes purchase-money deeds of trust in California "nonrecourse" by prohibiting any deficiency judgment following foreclosure. In Spangler v. Memel, the California Supreme Court created an exception to the antideficiency rule of section 580b where the seller subordinated the buyer's purchase-money deed of trust to a construction loan deed of trust that was subsequently foreclosed, leaving the seller without security. This Article suggests that upon analysis of Spangler, the judgment is a misconceived attempt to protect sellers as a "class" from certain risks of real estate development, even though sellers of developable …
Mortgage Prepayment Clauses: An Economic And Legal Analysis, Dale A. Whitman
Mortgage Prepayment Clauses: An Economic And Legal Analysis, Dale A. Whitman
Faculty Publications
Most mortgages on income-producing real estate (as distinct from owner-occupied housing) contain clauses restricting early payment of the loan. These clauses are highly controversial, and borrowers often resist their enforcement. While other writers have discussed prepayment clauses in the recent legal literature, my objectives in this article are to advance this discussion in three respects: first, to provide an economic perspective on mortgage prepayment as support for a set of legal recommendations; second, to consider whether the bankruptcy of the mortgagor should affect enforceability of a prepayment fee clause; and third, to analyze the cumulative effect of the presence in …