March 2015
By: Mark N. Parry, David Rabinowitz, and Alan Kolod
Moses & Singer Alert
A recent decision demonstrates the importance of drafting the monetary obligations of the issuer and any guarantors under an indenture to preclude their assertion of affirmative defenses based on the Indenture Trustee's arguable failure to perform its obligations under the indenture, which are usually for the benefit of the noteholders rather than the issuer or a guarantor. The decision also contains a concise statement of what the Indenture Trustee must establish to obtain summary judgment and avoid protracted litigation concerning its own performance.