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Secured Credit and Business Bankruptcy
Prof. Michael Rustad,
2 credits day; 2 credits evening.
This course is designed to introduce LL.M students to the strategic, business and legal issues
involved in U.S. style financing arrangements and the federal law of business bankruptcy. While
UCC Article 9 is focus of the course, the course will introduce students to the problems of
secured credit and business bankruptcy. The secured credit and business bankruptcy course is
taught from a problem– sets and teaches skills such as business planning, as well as statutory
interpretation. The course also aims to familiarize students with the key documents for secured
lending including financing statements and security agreements with lesser coverage of real
estate mortgaging. We will study remedies of secured creditors and unsecured creditors; security
and foreclosure; repossession of collateral; judicial sales and deficiency and creditor‘s remedies
in bankruptcy. In addition the course introduces business bankruptcy law, which is always in the
background in U.S. secured credit transactions, covering the fundamentals of bankruptcy
procedures, bankruptcy and the automatic stay, and the treatment of secured creditors in
bankruptcy as well as debt priority. The course will also introduce students to the problem of
transnational bankruptcies, as well as the unlimited territorial scope of United States bankruptcy
jurisdiction, including topics such as collateral value during transnational bankruptcy, and the
process of negotiating, voting, and confirming a plan of reorganization in transnational
bankruptcies. Method of Examination: The course grade will be based on a final take-home
examination. Budapest, Hungary
Elective Course