July 30, 2008
Kelley Drye's Litigation and Corporate Trust practices have issued a client advisory discussing the duties of indenture trustees under New York law. On June 25, 2008, in a departure from prior law, the New York Court of Appeals held that "an indenture trustee owes a duty to perform its ministerial functions with due care, and if this duty is breached the trustee will be subjected to tort liability."New York Court of Appeals Decision (PDF, 89.66 K)
