College Columns June 2021 - Page 24

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after which additional due diligence will be conducted . The substantial vetting is an important check and balance to ensure that all relevant information on nominees is obtained and available to the Board of Regents . The Board of Regents will then meet on October 6 , 2021 during the NCBJ to make final decisions on the admissions of new Fellows for the 33rd Class of the College .
On behalf of all the Regents , the Chairs of the Nominating Committees and the members of the Circuit Admissions Councils and Nominating Committees , I want to thank you in advance for your participation in this critically important process . It is among the most important functions of the College , and your participation will help guaranty that the College continues to be the preeminent organization that it is .
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line test ,” and found that if the “ primary purpose ” for purchasing the house was to run it as a business , the debtor qualified for Subchapter V protection .
Expanding on this broad interpretation of the “ engaged in commercial or business activities ” test , the court in In re Wright , 2020 WL 2193240 ( Bankr . D . S . C . 2020 ), addressed the situation where the debtor was the owner of two businesses that had ceased operations two years before filing bankruptcy and which had sold all of their assets the year before the bankruptcy was filed . The debts from these defunct businesses that the debtor guaranteed were secured by the debtor ’ s primary residence . Interpreting the statutory language as not limited to debtors “ currently ” engaged in business or commercial activities , the court found the debtor met the Subchapter V standard “ by addressing residual business debt .”
Since Ventura had included in its reasoning that the debtor qualified as “ engaged in commercial or business activities ” because , in part , these activities were intended to make a profit , the obvious follow-on question was addressed in In re Ellingsworth Residential Cmty . Ass ’ n , 619 B . R . 519 ( Bankr . M . D . Fla . 2020 ), of whether a non-profit community association could qualify as “ engaged in commercial or business activities .” The court found the statute to be “ unambiguous ” in allowing “[ a ] ny corporation that conducts ‘ commercial or business activities ’ [ to be ] a small business debtor ” where “[ n ] o profit motive is required .” The court focused on whether the debtor engaged in contracting for goods and services and in hiring professionals such that the debts were not for “ personal , family or household purposes ,” a blending of the debt structure and activities requirements for qualification under SBRA .
In In re Blanchard , Case No . 19-12440 ( Bankr . E . D . La . July 16 , 2020 ), the debtor was allowed to convert from Chapter 11 to Subchapter V based on debt incurred by individual debtors resulting from guarantees of commercial or business loans to separate entities , owned by the debtors but not in bankruptcy . Following the reasoning in Wright , the court noted that “ the statute neither qualifies ‘ engaged in ’ as currently nor formerly ‘ engaged in ,’” and explained that as the debts “ stem from operation of both currently operating businesses and non-operating businesses ,” the “ engaged in commercial or business activities ” standard was met .