On July 1, Justice Marcy Friedman of the Supreme Court of New York for New York County denied Natixis Real Estate Holdings, LLC's ("Natixis") motion to dismiss a repurchase action brought by Wells Fargo Bank, N.A., and Computershare Trust Company, N.A. in their collective capacity as Securities Administrator for Natixis Real Estate Capital Trust 2007-HE2. Consistent with her prior rulings in repurchase actions, held that the action was timely because the six-year statute of limitations for the claims only began to run on the execution date of the PSA, and not on the "as of" or effective date of the PSA. The court also ruled that a timely repurchase demand was not a condition precedent under the PSA at issue and that the plaintiff had adequately alleged in its complaint that Natixis had discovered loans that breached representations; thus, the court held that plaintiff's failure to make a timely repurchase demand did not warrant dismissal of the action.
Justice Friedman further held that the Securities Administrator had standing to assert the repurchase action against Natixis on behalf of the Trust, rejecting the argument that only the Trustee could bring the suit, as the Securities Administrator's rights and duties are limited only to administrative tasks and not discretionary ones. The court also dismissed the plaintiff's claims for rescissory and consequential damages and attorneys' fees, and struck the plaintiff's jury demand, without opposition. Order.
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