Federal Deposit Insurance Corp. v. Casey

I dissent.

The opinion promulgated by the majority of the court overlooks the fundamental and far-reaching power of the bankruptcy court to cure defaults and the effect of such a cure in this case.

The Bankruptcy Code provides:(a) Notwithstanding any otherwise applicable nonbankruptcy law, a plan shall—

******(5) provide adequate means for the plan’s implementation, such as—

(G) curing or waiving of any default; 1

Under this and other provisions of the Code, the bankruptcy court is clearly vested with the power to cure all defaults.2

Both parties to the instant case agree that the guarantors’…