BNY Mellon Can't Make Morgan Stanley Buy Back $81M Loan

Law360, New York (June 20, 2013, 4:32 PM EDT) -- A New York federal judge said Wednesday that Morgan Stanley did not have to buy back an $81 million mortgage loan it allegedly sold to investors despite hidden environmental risks, saying the lender was never served with a required notice.

U.S. District Judge Colleen McMahon rejected Bank of New York Mellon Trust Co. NA's argument that a three-day window for sending a notice to cure did not apply to the loan because the underlying breach was uncurable. Under the contract, Morgan Stanley was only obligated to...
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