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Articles 1 - 3 of 3
Full-Text Articles in Law
An Economic Perspective On Subprime Lending, Michael H. Anderson
An Economic Perspective On Subprime Lending, Michael H. Anderson
Chicago-Kent Law Review
This article aims to provide a concise economic overview of several interesting subprime financing mechanisms, which are becoming increasingly common on the U.S. financial landscape. In particular, rent-to-own, payday lending, pawn broking, and (vehicle) title loans are considered. Generally speaking, a common thread with these loans is their relatively small size and short duration as well as the absence of a credit check or any of the traditional processes for determining credit-worthiness. Due to the ready availability of these loans, they appeal to low-income consumers, including the “working poor,” and to those who have suffered financial setbacks. Because the natural …
Securitization Of Aberrant Contract Receivables, Thomas E. Plank
Securitization Of Aberrant Contract Receivables, Thomas E. Plank
Chicago-Kent Law Review
Originators of traditional receivables, such as automobile loans, use securitization and structured finance debt transactions to obtain financing at lower net costs than traditional secured financing. The typical securitization or structured finance debt transaction combines (i) a sale of receivables to a separate, bankruptcy remote, special purpose legal entity (an “SPE”) and (ii) a loan to the SPE secured by the receivables. This combination produces lower net financing costs because the SPE’s lender can obtain repayment of its loan from the receivables while avoiding the costs that the Bankruptcy Code imposes on direct secured lenders to originators that could become …
Some Economic Insights Into Application Of Payments Doctrine: Walker-Thomas Revisited, James W. Bowers
Some Economic Insights Into Application Of Payments Doctrine: Walker-Thomas Revisited, James W. Bowers
Chicago-Kent Law Review
Contractual relations frequently involve multiple transactions, which might give rise either to a single aggregate debt, or else to multiple differing obligations. This conflict creates the application of payments problem. Unsurprisingly, the common law developed long-standing rules for the application of partial payments to multiple, but remedially distinguishable debts. The subject is made timely again by the recent enactments of the 1999 revision of Article 9 of the Uniform Commercial Code. Article 9 instructs courts how to solve the application of payments problem when some partial payments might satisfy “purchase money” security interests. The enactments repealed the common law application …