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ABI Journal

11 U.S.C. § 506(c)

Prospective Section 506(c) Surcharges Don’t Qualify as Adequate-Protection Payments

A 15% equity cushion across the board didn’t suffice for adequate protection when mortgages on 82 properties were not cross-collateralized.

The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction

When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.