Thrifty Oil Co. v. Bank of America National Trust and Savings Association

The decision of the District Court granting summary judgment to appellee Bank of America is hereby AFFIRMED for the reasons stated in Judge Whelan’s opinion, reported at Thrifty Oil Co. v. Bank of America (In re Thrifty Oil Co.), 249 B.R. 537 (S.D.Cal.2000). The District Court’s opinion is set forth below in he&c verba:

“Thrifty Oil Company (“Thrifty”) appeals an order of the United States Bankruptcy Court, the Honorable Louise De-Carl Adler presiding, granting a motion for summary judgment brought by Bank of America National Trust & Savings Association (“BofA”). This Court has appellate jurisdiction pursuant to 28 U.S.C. §§ 158 (a)(1) & (c)(1)(A).

This appeal presents two questions: (1) whether “termination damages” under an interest rate swap agreement, entered into between a lender and a borrower as part of a larger financing transaction, constitute unmatured interest disallowed under Section 502(b)(2) of the Bankruptcy Code, and (2) whether interest rate swap agreements violate California’s Bucket Shop Law. On summary judgment, the Bankruptcy Court answered both questions in the negative and entered judgment in favor of BofA. See In re Thrifty Oil Co., 212 B.R. 147…