First Millennium Court Declines to Enforce Limited Recourse Provision in ABS Indenture | Practical Law

First Millennium Court Declines to Enforce Limited Recourse Provision in ABS Indenture | Practical Law

An update on the Second Circuit Court of Appeals decision in The Bank of New York v. First Millennium, Inc., holding that investors in certain asset-backed securities have full recourse to funds retained by the issuer for the benefit of the originator when defaults on the underlying assets had exhausted the collateral.

First Millennium Court Declines to Enforce Limited Recourse Provision in ABS Indenture

by PLC Finance
Published on 04 Jun 2010 • New York
An update on the Second Circuit Court of Appeals decision in The Bank of New York v. First Millennium, Inc., holding that investors in certain asset-backed securities have full recourse to funds retained by the issuer for the benefit of the originator when defaults on the underlying assets had exhausted the collateral.