3rd Circ. Grants $10M Account To Wachovia In Bankruptcy Deal

Law360, Los Angeles (August 8, 2013, 11:01 PM EDT) -- Wachovia Bank NA won dibs on the $10 million bank account of an insurance company Thursday, when the Third Circuit ruled the insurer's bankrupt parent WL Homes LLC had control of the account at the time it posted the money as collateral on a Wachovia-underwritten loan.

Wachovia had sued WL Homes' Chapter 7 bankruptcy trustee for the account, held by the home builder's subsidiary JLH Insurance. According to its suit, the bank sought to recoup some of its losses on a loan it had underwritten for WL...
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