Redemption Or Repurchase Of Charged Interest

1. Leasing Innovations, Inc. v. R&D Mainman Family Limited Partnership, 2016 NY Slip Op 31330(U) (N.Y. County Super., 2016). https://chargingorder.com/opinion-2016-new-york-leasing-innovations-buy-back-charging-order.html

Eights & Jackson Investment Group v. Kaw Valley Bank, 2013 WL 183753 (D.Kan., Jan. 17, 2013).

1. Eights & Jackson Investment Group v. Kaw Valley Bank, 2013 WL 183753 (D.Kan., Jan. 17, 2013). https://chargingorder.com/opinion-2013-kansas-eights-jackson-investment-repurchase-charging-order.html

(:title Redemption Or Repurchase Of Charged Interest:) (:Summary: Redemption Or Repurchase Of Charged Interest:) (:description Redemption Or Repurchase Of Charged Interest:) (:keywords charging order, redemption, redeem, repurchase, purchase, interest:)

Topic Redemption

Because under § 503(e) the predicate of repurchase or redemption rights is the initiation of proceedings to foreclose the charged interest, and foreclosures are very rare as it is, instances of such repurchase or redemption of the D/M's interest are almost non-existent. They are then pushed to the very brink of extinction by the requirement that the creditor then be paid the full amount of the judgment to effectuate such repurchase or redemption.

Nonetheless, there are two issues that could be addressed:

1. Whether such repurchase or redemption should be allowed to occur if the creditor and the LLC or non-debtor members agree to a price.

2. What happens if there are competing attempts to repurchase or redeem the D/M's interest.

Note that if there is a power-struggle going on with the entity. Currently this seems to be addressed by the language of § 503(f) which gives the repurchasing or redeeming party only the rights as to the extent of the D/M's former interest only the rights that the creditor would have had, being that of an involuntary assignee.

REDEMPTION AND REPURCHASE OPINIONS

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Leasing Innovations, Inc. v. R&D Mainman Family Limited Partnership, 2016 NY Slip Op 31330(U) (N.Y. County Super., 2016).

Eights & Jackson Investment Group v. Kaw Valley Bank, 2013 WL 183753 (D.Kan., Jan. 17, 2013).

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