Attorneys still are not sure . . . who is entitled to foreclose !


In Any Assets of the FDIC Institution

Here is a gravamen for the controversy for whos entitled to foreclose. I believe it to be the core or central issue from which the seed of controversy has blossomed a multitude of claims, beliefs and scattered broad based arguments. Business Trusts offered certifcates that constitue Loans secured by the institution’s assets. Litigation must address the rights to legally enforce or a perfect security interest in any assets of the failed or surviving institution.

Consider where such interest is taken in or with the intent to hinder, delay, or defraud the institution or the institution’s creditors. A business trust assures creditors and others with valid security interests against the institution that their secured claims will be recognized. But a secured creditor only has rights in the collateral equal to the amount of the creditor’s claim; once that claim is satisfied, the lien is of no further consequence.

The FDIC guarantees that the secured party will receive full value of its valid claim, up to the value of the collateral.2326

In the D’Oench Duhme doctrine, which is codified in the Act, agreements which diminish or defeat the interest of the FDIC in any asset acquired by it under Section 1821 or Section1823 of the Act, either as security for a loan or by purchase, or as receiver of any insured depository institution, shall be invalid against the FDIC (subject to conditions under thact).

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