Tips For Enforcing Failed-Bank Notes Purchased From FDIC

Law360, New York (April 7, 2015, 12:20 PM EDT) -- For financial institutions looking to purchase assets of a failed bank from the Federal Deposit Insurance Corp. through a purchase and assumption agreement (P&A agreement), it may seem obvious that the power to enforce the obligations due under those assets, such as promissory notes, comes part and parcel with the P&A agreement. If the financial institution purchasing the notes (called the "assuming institution") could not enforce the notes it was purchasing, why purchase them at all?...

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