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Executory Contracts — Non-lease contractsIn re Southern Pacific Funding Corporation, 268 F.3d 712 (9th Cir. 2001) Subordination clause in indenture agreement that preserved certain secured creditors' rights both pre- and post- bankruptcy did not violate § 365(e)(1) of the bankruptcy code. In re Crow Winthrop Operating Partnership, 241 F.3d 1121 (9th Cir. 2001) 1) Issues of anti-assignment and change of ownership properly considered on motion rather than in an adversary proceeding; 2) bankruptcy court properly found that prohibition on change of ownership was an illegal anti-assignment clause under § 365(f). In re Catapult Entertainment, Inc., 165 F.3d 747 (9th Cir. 1999) Ch. 11 bankruptcy debtor in possession may not assume executory contract made nonassignable by nonbankruptcy law due to materiality of nondebtor party’s identity, unless nondebtor party consents. §365(c)(1) In re Robert L. Helms Construction and Development Co., Inc., 139 F.3d 702 (9th Cir. 1998) en banc It is a question of fact for bankruptcy court whether option contract to purchase real property is an executory contract that may be accepted or rejected by bankruptcy trustee In re The Circle K Corporation, 127 F.3d 904 (9th Cir. 1997), cert. denied, 522 U.S. 1148 (1998) Lease provision barring exercise of renewal option by lessee in default does not preclude defaulting Chapter 11 bankruptcy debtor from doing so In re Claremont Acquisition Corporation, Inc., 113 F.3d 1029 (9th Cir. 1997) Debtor car dealer’s incurable nonmonetary default precludes assignment of dealership franchise agreement in bankruptcy proceeding. §356(b)(2)(d) only applies to monetary penalties not having to be cured. In re CFLC, Inc., 174 B.R. 119 (N.D.Cal. 1994), aff’d 89 F.3d 673 (9th Cir. 1996) Executory contracts are assignable in bankruptcy notwithstanding any contractual provision restricting assignment, unless the contract is of a kind that applicable law makes nonassignable. The court in disallowing the assignment followed the traditional federal rule of nonassignability of non-exclusive patent licenses absent the express consent of the patent holder. In re Prize Frize, Inc., 32 F.3d 426 (9th Cir. 1994) License fees were royalties for purposes of §363(n) and had to be paid if promisor elected to retain rights under contract. In re Texscan Corp., 976 F.2d 1269 (9th Cir. 1992) Retrospective insurance premium k between insurer and insured is not an executory k In re Sun Runner Marine, Inc., 945 F.2d 1089 (9th Cir. 1991) Flooring agreement was an executory k but was not assumable because it constituted a financial accommodation In re Texscan Corp., 107 B.R. 227 (9th Cir. B.A.P. 1989), aff’d. 976 F.2d 1269 (9th Cir. 1992) Executory contract that expires post-petition but before motion to assume is filed cannot be assumed In re Munple, Ltd., 868 F.2d 1129 (9th Cir. 1989) Real estate Brokers commission earned prepetition is not an executory contract. |
