Client Alert: Only in New York? Assignee Permitted to Enforce Mortgage Without Being Holder of the Note

Can an assignee of an interest in a mortgage and mortgage note by way of a written assignment enforce the underlying obligations under New York law if the original note was not delivered and indorsed to it? On May 31, 2017, in an unsigned opinion that will interest sellers and buyers of loans and other loan market participants, the Court of Appeals for the Second Circuit addressed this question.

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Douglas Schneller handles a broad range of complex transactional matters involving bank finance and lending; restructuring, bankruptcy and insolvency; intercreditor and subordination arrangements, including for mezzanine, leveraged, multi-lien and unitranche financings; claims analysis and reconciliation; and purchases and sales of par and distressed assets such as bank loans, notes, accounts receivable, trade claims, bankruptcy claims, and equity interests. He also counsels clients on a range of other transactional matters, including trade and receivable finance (including default-triggered puts and vendor/account receivable and trade financing); bankruptcy transactional matters including distressed investing, rescue and debtor-in-possession finance, and sales under Bankruptcy Code Section 363; corporate trust and agency; structured products; private placements; portfolio management and monitoring; and securities law matters.