SelectedWorks @ Widener University Commonwealth Law School
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Administrative Law Progress in 1997: Selected Pennsylvania Supreme Court Decisions Involving Constitutional and Administrative Decisions
Warranties of Title, Foreclosure, Sales and the Proposed Revision of U.C.C. §9-504: Has the Pendulum Swung Too Far?
Derivatives and Rehypothecation Failure: It\u27s 3:00 P.M., Do You Know Where Your Collateral Is?
A borrower would probably be alarmed to learn that its lender had an unrestricted right to use and sell the collateral that the borrower had pledged to secure its borrowings. Borrowers typically believe that a lender should safeguard and protect collateral pledged to it, not use the collateral for its own gain. Yet in the derivatives market, it has become increasingly common for secured parties to insist upon such unrestricted use of pledged collateral