Insolvency of Financial Institutions
This course will examine issues that are unique to financial institutions in the context of insolvency proceedings. It will cover topics such as representing a financial institution as a creditor of a bankrupt entity (including corporate entities and other financial institutions). The course will also address the following issues: proceedings under Chapters 11 and 7 of the U.S. Bankruptcy Code, proceedings under the Securities Investor Protection Act (SIPA); debtor-in-possession (DIP) financing; Chapter 11 plan solicitation and confirmation; and the safe-harbor provisions of the Bankruptcy Code with respect to derivatives, repurchase agreements, and other financial contracts. In addition to learning the underlying law, theory, and policy regarding these topics through class attendance and the reading of relevant statutory law, case law, leading treatises, and other materials, students will also gain practical exposure to these issues by reviewing pleadings and lending documents from major Chapter 11 cases, as well as by participating in mock negotiations. Open to LL.M. students only.