This post was also written by Sarah Kam You can find a detailed analysis in our client alert on the order Safe Harbors and Securitizations: Loan Payments in Connection with a Commercial Mortgage-Backed Securitization Protected from Clawback under the U.S. Bankruptcy Code Safe Harbors The Swap Report The U.S. Bankruptcy Court, Northern District of Illinois issued a decision of particular importance to lenders and securitization servicers facing complications from the bankruptcy of a borrower involved in a commercial mortgage-backed securitization. The court clarified the scope of safe harbor protections for loan payments which are "related to" a securities contract, dismissing a chapter 7 trustee’s avoidance claims seeking to claw back over $5 million in pre-petition loan payments made to repay loan obligations owed to a trust.