This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). 

The phrase "Chapter 11 bankruptcy proceeding" is NOT a lender friendly phrase.  Chapter 11 is a bankruptcy where the borrowerdebtor intends to reorganize itself, right-size its balance sheet and then emerge from bankruptcy as

Recently the IRS corrected a mistake inadvertently created by it in September 2009, when it made changes to the REMIC rules governing changes to CMBS loans.  One result of the 2009 change was that partial releases, expressly contemplated in the CMBS loan document, must pass the “principally secured by real estate” test for qualified mortgages at