Commercial Tort Claims Must Be Specifically Identified In Security Agreement

In Banco Santander P.R. v. Puerto Rico Hospital Supply, Inc. (In re P.R. Hosp. Supply, Inc.), 617 B.R. 181 (Bankr. D.P.R. 2020) the issue before the court was whether the secured lender’s security interest extended to debtor’s monetary recovery in arbitration and litigation. The court ruled that the secured lender’s lien did not.

The Background

On April 28, 2017, Puerto Rico Hospital Supply, Inc., and Customed, Inc. (collectively, the “Debtors”)…