Bank One v. Prudential Insurance

FITZWATER, District Judge:

This pre-FIRREA1 litigation presents questions concerning the rights of secured creditors of a failed national bank, and of the Federal Deposit Insurance Corporation (“FDIC”), with respect to a sale-leaseback transaction entered into by the creditors and the bank prior to its insolvency. The creditors seek to recover against the pledged collateral on the basis of contractual rights and obligations that took effect by operation of an ipso facto clause upon the failed bank’s insolvency. Among the questions the court must decide are whether the creditors have a provable…