Last week, Judge Furman ruled, following a bench trial, that some of the recipients of accidental wire payments of almost $900 million were entitled to keep the proceeds. Citibank, acting as the administrative agent for the loans, had intended to wire $7.8 million in interest payments to a series of lenders, but through an error had also sent an additional wire of almost $900 million – representing the entire principal amount of the underlying loan.

Judge Furman concluded that the lenders could keep the funds under New York’s “discharge-for-value” defense:
Continue Reading Judge Furman: Lenders Can Keep Accidental Loan Repayment Arising from Bank Error of “Perhaps Unprecedented Nature and Magnitude”