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Bankruptcy

Jun. 9, 2011

The 'D'Oench Duhme Doctrine' — A Friend in Deed to a Lender in Need

A powerful doctrine offering broad protection for lenders and interested parties can significantly cut down litigation costs. By Martin W. Taylor of Troutman Sanders LLP


By Martin W. Taylor


The recent real estate crash and related financial crisis have spawned substantial litigation over the enforcement of defaulted loans, including a plethora of guaranty collection actions. A significant portion of that litigation has involved loans, which have been acquired by financial institutions, funds and other investors from the Federal Deposit Insurance Corp. (FDIC), as the receiver for all of the failed banks. What seems to be a prevale...

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