Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

How to go from 0 mph to 60 mph in 86,400 seconds (one day) without pumping the fuel pedal:

http://www.nysb.uscourts.gov/sites/default/files/opinions/198038_134_opinion.pdf

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The Comfort Order Motion was intended to assure JPMC that it could
continue to make clearing advances knowing that such advances “will be allowed as claims
under the Guarantee Agreements secured by the Holding Company Collateral.” Id. at ¶ 12.
LBHI also acknowledged that the Amendments, the Guarantees, and the Security Agreements
“are ‘securities contracts’ within the meaning of section 741(7) of the Bankruptcy Code.” Id. at
¶ 17.

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B. The Clearance Agreement, the August Agreements, and several of the September
Agreements constitute “securities contracts” for purposes of section 546(e).
Section 546(e) of the Bankruptcy Code protects from avoidance any transfer to a
financial institution made in connection with a “securities contract.” 11 U.S.C. § 546(e).
“Securities contracts,” in turn, are defined by section 741(7) of the Bankruptcy Code:
‘securities contract’ – (A) means –
(i) a contract for the purchase, sale, or loan of a security…
including any repurchase or reverse repurchase transaction on any
such security … (whether or not such repurchase or reverse
repurchase transaction is a ‘repurchase agreement’ as defined in
section 101);
…
(v) any extension of credit for the clearance or settlement of
securities transactions;
(x) a master agreement that provides for an agreement or
transaction referred to in clause (i) [or] … (v) … together with all
supplements to any such master agreement, without regard to
whether the master agreement provides for an agreement or
transaction that is not a securities contract under this subparagraph,
except that such master agreement shall be considered to be a
securities contract under this subparagraph only with respect to
each agreement or transaction under such master agreement that is
referred to in clause (i) [or] … (v); … or
(xi) any security agreement or arrangement or other credit
enhancement related to any agreement or transaction referred to in
this subparagraph, including any guarantee … by or to a…
financial institution, or financial participant in connection with any
agreement or transaction referred to in this subparagraph … .
11 U.S.C. § 741(7). The plain language of section 741(7) is very broad in its application and
encompasses virtually any contract for the purchase or sale of securities, any extension of credit
for the clearance or settlement of securities transactions, and a wide array of related contracts,
including security agreements and guarantee agreements.

*** JPMCB is the CTs Guarantee Trustee since 2003!***