The Springing LLC will contain the same bankruptcy remote provisions as the Delaware Statutory Trust of DST for the lender's benefit, but it will not contain the prohibitions against the raising of additional funds, the raising of new financing or the renegotiation or the terms of the existing debt or entering into new leases. (exeter1031.com)
Lenders view the Delaware Statutory Trust as one borrower even though there can be up to 99 individual investors or beneficiaries. (exeter1031.com)
In In re Alco Stores, Inc., the U.S. Bankruptcy Court for the Northern District of Texas was recently faced with determining whether «state money transmitter statutes» imposed a hidden lien or statutory trust similar to the PSA or PACA to impose a «floating trust» on all of a debtor's assets so as not to require «tracing» in bankruptcy (generally, requires a trust beneficiary to identify and trace its alleged trust funds). (abfjournal.com)