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That's the big problem for me; I would like for nobody to get hurt, but it seems that the holder of the secured debt has some contractual rights. Given the situ
by nickff 7y ago
That's the big problem for me; I would like for nobody to get hurt, but it seems that the holder of the secured debt has some contractual rights. Given the situation, I don't see how a third party has the right to step in and take from one party to give to the other.
Ideally we'd have debt-holders negotiating solutions with their counter-parties, but that seems difficult with securitized loans.
- AnimalMuppet 7y agoWell... "a contract is a contract", but there's some recognition that extraordinary circumstances can need special treatment. My home insurance, for example, has clauses about "acts of God" and "acts of war". (Specifically, earthquakes are included in "acts of God" - or maybe they're specifically excluded, in any event, the policy doesn't cover them. Tornadoes and hurricanes might also be excluded. But I don't live in tornado country; I do live in an area that can have earthquakes.)