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TCH Brief Seeks Clarification of District Court Order in NML Capital v. Argentina

The Clearing House filed an Amicus Brief to seek clarification of the applicability of the district court’s order to beneficiary’s banks, funds-transfer networks, and other parties to funds transfers and to discuss the inclusion of the indenture trustee in the injunction, after the 2nd Circuit Court of Appeals issued a stay of the November 21 district court order. The Brief argues that (i) the Amended Injunction improperly expands the scope of nonparties bound by its terms beyond aiders and abettors, (ii) the amended injunction is contrary to law because it interferes with property right of nonparties (iii) the amended injunction violates Federal and New York State law because it improperly interferes with the orderly functioning of payments systems, and (iv) extraterritorial application would violate due process by potentially imposing double liability on financial institutions outside New York.