Servicing and Other Activities Clause Samples

Servicing and Other Activities. In addition to stated intent, behavior such as servicing of the assets has been found by courts to be indicative of the substance of the transaction. See, e.g., In re Mid Atlantic Fund, Inc., ▇▇ ▇.▇. ▇▇▇, ▇▇▇ (▇▇▇▇▇. S.D.N.Y. 1986) (“Creditors failed to act as if they were the absolute owners . . . by recording the assignment or by demanding payment from the mortgagees”); see also In re ▇▇▇▇, 327 F. Supp. 1315, 1317 (S.D.N.Y. 1971) (court found petitioner was not a joint venturer with ownership interest in bankruptcy estate because petitioner failed to file financing statements, debtor continued to control and manage accounts receivable and accounts were not segregated). Courts have varied the importance given to various activities of assignors and assignees in determining how a transaction should be characterized. Courts have found transactions to be sales where notice was not given to obligors and the assignor continued to service the assigned assets. ▇▇▇▇▇ v.