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§ 928

Financial Oversight & Mgmt. Bd. for P.R., In re

Ruling
Bondholders’ lien on Puerto Rico Electric Power Authority's special revenues was subordinate to the utility’s reasonable and necessary post-petition operating expenses. (1st Cir.)
Issue(s)
Post Petition Effect of Security Interest; Liens on Special Revenues.

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Court :
Commercial opinion summary, case decided on November 13, 2024 , LexisNexis #0125-065

Fin. Oversight & Mgmt. Bd. for P.R., In re--Assured Guar. Corp. v. Carrion

Ruling
Section 928(a) permitted but did not require, continued payments on municipal bonds duringthe pendency of the bankruptcy proceedings. (1st Cir.)
Issue(s)
Post Petition Effect of Security Interest; Special Revenues Acquired by Debtor.

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:
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 26, 2019 , LexisNexis #0519-093

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
Professional services fees that qualified as operating expenses could be satisfied from debtor county's sewer revenues.

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Commercial opinion summary, case decided on June 27, 2013 , LexisNexis #0813-097

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
County ordered to remit revenue from sewer system to receiver except for amount necessary for actual operations.
Procedural posture

Plaintiff banks and insurance companies filed an adversary proceeding against defendant Jefferson County, Alabama, seeking a judgment declaring that the County was not allowed to withhold payments of money it claimed it needed to operate a sewer system. The case was tried to the court.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0912-133

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
Subordination of consensual lien on specific revenues was inapplicable to pledge and distributive scheme under indenture agreement for sewer system operating expenses.
Procedural posture

An indenture trustee and other banks filed a complaint against a county that sought bankruptcy relief under chapter 9, based on a dispute over what expenditures for the county's sewer system were payable ahead of payments to those lenders who/which secured payment of interest and principal owed on the county's sewer system's warrants by obtaining a consensual lien against some revenues of the sewer system.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0213-019