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Legal Commentary
: DiscriminationsIf ?Preferential Treatment? Is Bad...
As has been widely reported, Connecticut Senator Chris Dodd received ?preferential interest rates on two mortgages from Countrywide Financial Corp.? (HatTip to InstaPundit)
Dodd acknowledged that Countrywide placed him in a ?VIP section,? but he denied he knew he was getting a special deal and said he was not friends with Countrywide CEO Angelo Mozilo.Would someone please ask Sen. Dodd why he believes preferential treatment based on Senatorial status is more objectionable than preferential treatment based on race, which he actually supports.Dodd said that he and his wife refinanced their homes like millions of Americans did at the time and got a ?market rate,? and would have walked away from the deal had he believed he was getting preferential treatment from Countrywide, a leading subprime lender at the center of the mortgage meltdown.
Full post as published by Discriminations on December 27, 2008 (boomark / email).
Swedish Bankruptcy Law Preferential claims (claims with förmånsrätt)
Creditors who have a security with a special preferential claim are entitled to receive payment out of the assets of the bankruptcy estate so secured before other creditors. This may be the case, for example, where a certain asset has been pledged in security...
Floating charges
The most common form of general preferential claims is a floating charge (?företagsinteckning?). It is a security which covers all business assets with certain exceptions e.g. liquid funds...
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If a debtor repays a prior unsecured loan to another family member within one year of filing bankruptcy the trustee can recover the repayments from the family member as a preferential payment...
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An employment contract does not automatically terminate because the employer is declared bankrupt. The receiver has to decide whether or not to give notice of termination. An employee?s salary claim is considered as a general preferential status...
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