Closing the Loophole
Quarles & Brady filed on the lead amicus brief for the Arizona Bankers Association in a case related to protecting secured lenders’ rights and collateral. There had been a failure to properly document the assignment of the rights and collateral of a loan to a bank that had assumed the debt, leading to an argument that it had forfeited those rights. Quarles & Brady prepared an argument that recording the transfer of the loan to the new entity conveyed the rights and collateral as well, regardless of the failure to include a document formally transferring them, and the court agreed. In essence, Quarles & Brady wrote the amicus brief on behalf of the entire banking industry of Arizona, protecting the creditor’s rights of the state’s entire financial services sector.