Wednesday, March 19, 2008

Authority of Trustee of Securitized Trust

The Trustee Has The Power to Represent the Securitization Trusts in Court Proceedings
The Trustee has the power to represent the Securitization Trusts in litigation and the resolution of related disputes
by compromise and settlement will bind all relevant parties. See e.g., Carey v. Brown, 92 U.S. 171
(1875); Shaw v. Little Rock and Fort Smith R. Co., 100 U.S. 605 (1880); Redmond v. Commerce Trust, 144
F.2d 140 (8th Cir. 1944), cert. denied 323 U.S. 776, reh'g. denied 323 U.S. 819 (1945); Quirke v. St. Louis-
-San Francisco Ry. Co., 277 F.2d 705 (8th Cir. 1960).
The Trustee is empowered to assert claims as the trustee of an express trust, and the Trustee may properly
enter into and consummate a settlement and compromise on behalf of itself and all Certificateholders. Shaw v.
Little Rock and Fort Smith R. Co., supra; U.S. & Mexican Trust Co. v. U.S. Mexican Trust Co., as Trustee,
250 F. 377 (8th Cir. 1918); Friedman v. Chesapeake & Ohio Ry. Co., 261 F. Supp. 728 (S.D.N.Y. 1966), aff'd
395 F.2d 663 (2d Cir. 1968); Home Mortgage Co. v. Ramsey, 49 F.2d 738 (4th Cir. 1931); Quirke v. St. Louis-
-San Francisco Ry. Co., supra; Schallitz v. Starrett Co., 82 N.Y.S.2d 89 (N.Y. Sup. Ct. 1948); Murphey v.
Dalton, 314 S.W.2d 726 (Mo. 1958); Johnson v. Curley, 257 P. 163 (Cal. 1927); Leake v. Watson, 21 A. 1075
(Conn. 1891); 76 AM. JUR. 2D TRUSTS § 566 (1975); RESTATEMENT (SECOND) OF TRUSTS § 192
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