Absolute Rule Research Articles

The Hertz Maneuver (and the Limits of Bankruptcy Law)

On June 11, 2020, the Hertz Corporation attempted to become the first corporate debtor to finance a bankruptcy proceeding by issuing new shares of common stock to the public. Though many thought Hertz’s equity was worthless, its stock was trading at a positive value on the secondary markets, and Hertz was attempting to tap into that market value. When the bankruptcy court blessed the plan, many observers responded with outrage on behalf of retail investors who, they argued, were being duped into a worthless investment. They suggested that the law should prevent retail investors from buying these shares. Ultimately, the Securities Exchange Commission signaled that it had similar concerns and effectively killed the proposal. This essay explores the questions raised by this incident. It argues that commentators were focused on the wrong bankruptcy problem. Contrary to the view of the commentators, Hertz’s bankruptcy does not show that retail investors require bankruptcy-specific protections. The Hertz maneuver does, however, highlight distortions created by bankruptcy law’s distribution rule, known as the absolute priority rule. That rule cuts off future opportunities for those holding equity (or junior claims) in a debtor firm and makes it difficult for stockholders and unsecured creditors to make long-term investments in the firm’s future value. From this perspective, existing proposals to alter bankruptcy’s priority rules begin to look like a form of investor protection that could facilitate investment in a firm’s long-term value.

Kin-Mediated Male Choice and Alternative Reproductive Tactics in Spider Mites.

Simple SummaryEvolutionary-grounded theories predict that any mating-related behavior should be influenced by the degree of genetic relatedness between the involved interactants. Close genetic relatedness may have beneficial and detrimental effects on evolutionary fitness. To optimize these trade-offs, mates should be able to discriminate kin and non-kin and adjust their behaviors accordingly. Here, we assessed kin-dependent mate choice and adjustment of alternative reproductive tactics (ARTs) in male spider mites. Our experiments suggest that male spider mites can assess kinship of rivals and prospective mates. Mate choice and expression of ARTs (fighting versus sneaking) were driven by direct and indirect fitness benefits arising from the degree of kinship of available mates and rival males competing for access to females. Depending on the social context (choice vs. no-choice, w/wo competition) and achievable fitness benefits, males seemed to use novelty as absolute decision rule and/or comparative evaluation in mate choice. Close kinship among rivals mitigated the males’ fighting propensity and favored adoption of the sneaking tactic. Overall, our study highlights kin-mediated plasticity in male choice and expression of ARTs and emphasizes the importance to consider different contexts and inclusive fitness benefit/cost trade-offs when interpreting mating preferences.Optimal outbreeding and kin selection theories state that the degree of kinship is a fundamental determinant in any mating system. However, the role of kinship in male choice and alternative reproductive tactics (ARTs) is poorly known. We assessed the influence of kinship on male choice and expression of ARTs in two populations of two-spotted spider mites Tetranychus urticae. Male spider mites guard premature females, which is an indicator of mate choice, and may conditionally adopt fighting or sneaking tactics to secure access to females. Males competing with kin or non-kin were offered one kin or non-kin female (experiment 1) and single males were presented a choice of kin and non-kin females (experiment 2). Under kin competition, males of both populations were more prone to guard non-kin than kin females at a 3:1 fighter:sneaker ratio. Under non-kin competition, all males were fighters. Under no-choice, males used novelty as indicator of genetic dissimilarity, serving as absolute decision rule for outbreeding. Under choice, comparative evaluation allowed males to preferentially guard females with higher reproductive potential. Overall, our study suggests that male spider mites can assess kinship of rivals and prospective mates. Kin discrimination allows adaptive, context-specific non-random mating preference and adjustment of ARTs.

Restructuring vs. Bankruptcy

We develop a model of a firm in financial distress. Distress can be mitigated by filing for bankruptcy, which is costly, or preempted by restructuring, which is impeded by a collective action problem. We find that bankruptcy and restructuring are complements, not substitutes: Reducing bankruptcy costs facilitates restructuring, rather than crowding it out. And so does making bankruptcy more debtor-friendly, under a condition that seems likely to hold now in the United States. The model gives new perspectives on current relief policies (e.g., subsidized loans to firms in bankruptcy) and on long-standing legal debates (e.g., the efficiency of the absolute priority rule).

Particularidades de la prescripción en los supuestos de abuso de las formas jurídicas y simulación en el Código Tributario chileno

The Chilean General Anti Avoidance Rules (GAARs) aim to deprive the fiscal effects resulting from a tax planning declared, by a tribunal, as abusive or as a sham. These institutions present some interesting characteristics in terms of the limitation period which distances them from what until now had been the absolute rule. In effect, even if the abuse and the sham are ruled in objective ways, the legislator considers the taxpayer’s actions are performed in bad faith. The consequence is an increase of the limitation period from three to six years by the application of the extraordinary limitation period’s rules. Additionally, in order for the Tax Administration to be able to inspect effects from this type of tax planning, it is necessary that the acts, contracts or legal business implemented by the taxpayer and declared elusive, have been taken place in revisable tax periods.

Cryptocurrency Meets Bankruptcy Law: A Call for Creditor Status for Investors in Initial Coin Offerings

In 1973, experts Homer Kripke and John Slain published a seminal study titled “The Interface Between Securities Regulation and Bankruptcy.” That lengthy analysis, contributed by, respectively, a former Securities and Exchange Commission official and a professor of law, examined the status quo and concluded that investors were receiving unfair priority vis-a-vis creditors in bankruptcy proceedings administered under the federal Bankruptcy Code. Focusing on the traditional “absolute priority rule,” the study pointed out that the Securities and Exchange Commission (SEC) support for the investor priority was unfounded and urged deference to the notion of general creditors coming first. Since then, a host of developments has complicated both the analysis and the traditional view of Kripke and Slain. First, the pivotal determination of “rescinding shareholder” has been made complex by, inter alia, an expanded notion of “sophisticated investor” occasioned by phenomena such as “crowdfunding.” Second, stock swaps, hedges, repurchase agreements and other hybrid responses to financier discomfort have clouded the definition of “investor.” Finally, the explosive growth of cryptocurrencies (and the ventures that would sell, distribute, trade or package them) has highlighted the need for a new, softer line between creditor and investor. Accordingly, the present authors re-visit the “absolute priority rule” with a view towards historic SEC involvement with Bankruptcy law and contemporary classification of some cryptocurrency-related entities as securities issuers. The article concludes that in light of the existing provisions and interpretations, the “absolute priority rule” examined through the lens of today’s innovative securities should be rethought to give investors in initial coin offerings creditor status. Whether the reader agrees or not is likely subordinated to the need for a conversation on the most egalitarian response – under both the securities laws and the Bankruptcy Code – to the investor’s claim for in pari passu treatment normally reserved for creditors, and likewise the general creditors’ opposition to sharing a legally enforceable priority.

Enhancing Rescue in Chapter 11: Lessons from Reform Efforts in the United Kingdom

This is a dynamic time for insolvency law. Many jurisdictions have made or are considering reforms to their insolvency regimes. The United Kingdom has proposed a new standalone restructuring mechanism that incorporates many attributes of Chapter 11, including a cross‐class cram down and the absolute priority rule. A distinctive feature of the UK proposal is the infusion of judicial discretion permitting courts to deviate from the absolute priority rule. This discretion is not permitted in the United States. This judicial discretion addresses a key problem with the application of the absolute priority rule in the United States—it may serve as an impediment to reorganization. This impediment is exacerbated by the recent U.S. Supreme Court decision, Czyzewski v. Jevic Holding Corp., which impacts the effective use of Chapter 11 rescue tools. This article explores the absolute priority rule, the problems associated with it, and the effect of Jevic in the United States. Drawing on the UK reform proposal, I argue that the United States should implement reforms that infuse judicial discretion into the application of the absolute priority rule. Doing so will facilitate the underlying policy goal of rescuing the company in Chapter 11 and also promote a broader policy goal of rescuing the business.

Kitabah Error Analysis Based on Theory of Rusydi Ahmad Thuaimah

This research is about writing error analysis based on Rusydi Ahmad Thuaimah's the- ory which aims to analyze writing errors in students of Islamic Education in 3rd semester 2018-2019 UMSIDA. Respondents in this study were students of PAI 3rd semester 2018- 2019. Data collection in this study uses documentation methods, questionnaires, and literature studies. The results of this study are factors in writing (Imlak) of 3rd semester students of islamic studies in 2018-2019 UMSIDA, Factor internal language: Not yet know the writing of harakat hijaiyah properly and correctly, difficulty in distinguishing hijaiyah let- ters with almost the same pronunciation, difficulty in distinguishing letters that are spoken with written ones. The solution to the obstacles faced by students of islamic studies in 3rd semester 2018-2019 UMSIDA in Maharah Kitabah (Imlak) is by building a mindset and easy motivation and being able to write Arabic words or sentences in accordance with the correct rules, making students familiar with imlak by maximizing the lecture time, given concepts related to the absolute rules correctly.

Rethinking Priority: The Dawn of the Relative Priority Rule and a New ‘Best Interest of Creditors’ Test in the European Union

[Revised version as of June 20, 2020] Article 11 of the EU Directive on restructuring and insolvency provides for a cross-class cram-down mechanism. When implementing the instrument, EU Member States may choose between an ‘absolute priority rule’ (APR) and an EU specific ‘relative priority rule’ (EU RPR) as a condition for the use of cram-down powers. The EU RPR is characterized mainly by the fact that it offers more flexibility in the negotiation of restructuring plans. So far, not enough attention has been paid to the fact that the European legislator has also introduced a novel and upgraded ‘best interest of creditors’ test (EU BIT) as part of the mechanism. This article explores the interaction of the EU RPR and the EU BIT from both a theoretical and practical standpoint. It concludes that, through its interaction with the EU BIT, the EU RPR does in theory not lead to the drastic consequences often described. A properly interpreted EU BIT absorbs large ‘distortions’ in the allocation of reorganization value. However, this article points out problems that could arise in practice. The fact that under an EU RPR/EU BIT cross-class cram-down two hypothetical values mark out the realm in which the EU RPR operates, and the priority rule itself lacks a clear guideline for entitlement, gives cause for concern that the praised flexibility would come at the expense of plan negotiability and plan acceptance.

‘This man is my property’: Slavery and political absolutism in Locke and the classical social contract tradition

It is morally impossible, Locke argued, for individuals to consensually establish absolute rule over themselves. That would be to transfer to rulers a power that is not ours, but God’s alone: ownership of our lives. This article analyses the conceptual presuppositions of Locke’s argument for the moral impossibility of self-enslavement through a comparison with other classical social contract theorists, including Grotius, Hobbes and Pufendorf. Despite notoriously defending the permissibility of voluntary enslavement of individuals and even entire peoples, Grotius similarly endorsed divine ownership of human life. He could do so coherently, we show, because he denied that despotic power gives rulers rights in the lives of their subjects. Masters do not own slaves in the way we own material things (which we may destroy at will). Reworking received Roman law categories, Grotius maintained that ‘perfect slavery’ consists in masters having a personal right to the slave’s perpetual service; a condition equivalent to what Locke called ‘drudgery’ and deemed permissible. Our analysis of this unpalatable set of ideas reveals that Locke’s argument is premised upon idiosyncratic conceptions of slavery and absolutism, disavowed by prominent defenders of absolutism in the classical social contract tradition. It is hence less powerful than commonly believed.

Ciężar dowodu i in dubio pro reo w prawie Unii Europejskiej

Zgodnie zart. 6 ust. 2 dyrektywy 2016/343, państwa członkowskie zapewniają, aby wszelkie wątpliwości co do winy rozstrzygano na korzyść podejrzanego lub oskarżonego, także w sytuacji, gdy sąd dokonuje oceny, czy uniewinnić daną osobę. Przeto już na etapie postępowania przygotowawczego,przynajmniej od dnia 1 kwietnia 2018 r. (termin transpozycji dyrektywy) wszelkie wątpliwości co do ustaleń faktycznych i dowodów oraz wykładnii stosowania przepisów prawa rozstrzygać należy na korzyść podejrzanego. Na gruncie dyrektywy jest to zasada absolutna, czyli odpadają wszelkie wyjątki.

ANALISIS KEDUDUKAN PERATURAN DESA PASCA PENGESAHAN UNDANG-UNDANG NOMOR 6 TAHUN 2014 TENTANG DESA

Rule of Law village Badran Sari and Nuts Rejo in the system of hierarchy legislation of village regulations is no longer mentioned explicitly as a type of legislation. That is, the position of village rule is considered only as a further description of the higher legislation, but there is no local government to give village empowerment. The process of establishing a village regulation covering the implementation of the village regulation Program Badran Sari and Nuts Rejo in central Lampung District, Badran Sari Village is already in accordance with the Village Regulation reference Number 6 year 2014 about the village and the role of village head and the village consultative agency while Natan Rejo village has not applied the village regulation and regulations in accordance with Law No. 6 of 2014 but it is appropriate as the absolute rule of the village head without any discussion and consultation with the community in advance. Constraints faced in the establishment of regulations village Badran Sari and Nuts Rejo in central Lampung regency. In the village of Badran Sari that they are experiencing obstacles that relate to the reason of the retribution in the village government, while the village of Nuts Rejo Kecamtan Elephant City is the quality of the performance of villages and BPD is less maximal, lack of socialization of village government to the community, and the performance capabilities of village governance.

Is the Relative Priority Rule right for your jurisdiction? A simple guide to RPR

The Directive (EU) 2019/1023 on Restructuring and Insolvency provides for a new rule to assess the fairness of the distribution of value under an accepted plan if an affected class of creditors voted against the plan: the European Relative Priority Rule (RPR). At the same time, the Directive allows Member States to adopt a US-style Absolute Priority Rule (strict APR) instead, but mandates exception to this rule (relaxed APR). As a result, all Member States are faced with the choice of either implementing the default RPR option or a version of the APR with more or less exceptions when implementing the Directive into their local restructuring laws. German and Dutch legislation provide first examples of the degree of variations. While APR is a concept that has been a part of US law for 80 years and German law for 20 years, the idea of an RPR is not just new. It has also not yet been explained extensively by scholars. If Member States consider implementing such a concept, they should know how it works. The following quick guide aims at providing this assistance.

Антиастрологический дискурс Максима Грека и вопросы формирования авторского кодекса писателя

The writings of Maximus the Greek (Maxim Grek) devoted to refutation of mantic astrology which proceeded in Moscow Rus in the second quarter of the 16 th century are analyzed. A conclusion is made that the opposition of two dominant pursuits predetermined the semantics of the antiastrological discourse: those were disproval of the ‘Hellenic’ teaching of star- gazers and affirmation of the force of Divine Providence, which granted the freedom of will to the Man (“the absolute rule of the Man”). Maximus the Greek based his polemic on the systemic relationship between the historic experience and the spiritual meaning. The morphology of the anti-astrological discourse embraces such stable elements of narration as the history of star-gazing, the image of fortune (”the wheel of luck”), the fates of Biblical and historical heroes, and a quotation from the song of Prophet Anna (the First Book of the Kings, 2: 7–8). The function of these units of meaning in the writings of different periods by Maximus the Greek, the forms of their presentation, the contextuality, the meaning of verbal communication, and the accents chosen became the part of the theoretical system of the polemic discourse and allowed identification of the stages of formation of the author’s code in the writings of Maximus the Greek. Maximus the Greek names the Romans and the Germans (Nikolay Bulev) to be the main culprits who initiated the spread of mantic astrology in Russia. Whereas in his earlier epistles, the learned monk from Mount Athos presents the history of formation of the pernicious teaching based on series of ethnonyms, in his later writings he pointed to Egypt and Assyria as the countries of the origin of star-gazing. Orthodox Rus is opposed to them. Movement from ethnography to geography made the scene of the anti-astrological expression more definitive. The representative series of mini-stories about the fates of the famous Biblical and historic heroes, whose feats were predetermined by the Divine Providence, served as a strong argument in the critique of star-gazing, and each name became symbolical in the sign system of the agonistic discourse of Maximus the Greek. The quotation from the song of Prophet Anna (the First Book of the Kings, 2: 7–8) should be recognized as the leading through motif of the antiastrological text. Its functioning in the writings of the learned monk allows us to describe the praxis of the discourse. The process of modification of its semantics reflected development of the author’s intention in the history of formation of the theme variety of Maximus the Greek and of the author’s manuscript code (Iosaf’s Collection of Writings) in general.

“His name throughout the earth”: YHWH’s political strategies in Exodus 3-15

This paper analyzes the characterization of YHWH as a political ruler in Exodus 3-15. His role as king of Israel comes as a novelty in the biblical narrative after the book of Genesis, and in the book of Exodus he presents new divine traits such as jealousy, wrathfulness and holiness. Among his new traits as a ruler comes the concern with his reputation, both in the short and long term, amidst his followers and even his enemies. A close-reading of the Plagues narratives thus shows God’s actions stemming from his political reasoning and strategies, which aim at driving the whole earth — especially Israel, his chosen people — to acknowledge his absolute power and rule.

“His name throughout the earth”: YHWH’s political strategies in Exodus 3-15

This paper analyzes the characterization of YHWH as a political ruler in Exodus 3-15. His role as king of Israel comes as a novelty in the biblical narrative after the book of Genesis, and in the book of Exodus he presents new divine traits such as jealousy, wrathfulness and holiness. Among his new traits as a ruler comes the concern with his reputation, both in the short and long term, amidst his followers and even his enemies. A close-reading of the Plagues narratives thus shows God’s actions stemming from his political reasoning and strategies, which aim at driving the whole earth — especially Israel, his chosen people — to acknowledge his absolute power and rule.

Corporate Restructuring under Relative and Absolute Priority Default Rules: A Comparative Assessment

The European Union recently adopted a Restructuring Directive intended to facilitate the reorganization of insolvent and other financially troubled firms. Although the central goal of the Directive parallels that of Chapter 11 of U.S. bankruptcy law — to protect and maximize the value of financially distressed but economically viable enterprises by consensually reorganizing their capital structure — the Directive introduces an innovative but controversial option: that EU Member States can decree that reorganization negotiations should be subject to a relative priority default rule, in contrast to the type of absolute priority default rule used by Chapter 11. EU officials argue that relative priority is not only fair but also provides the flexibility that is needed pragmatically to restructure a troubled firm. This article explains why relative priority inadvertently can undermine the incentives needed to achieve a successful restructuring, and why absolute priority provides a more effective default rule for reaching a negotiated consensus. Additionally, the article illustrates why the Directive’s standard not only may be unfair to creditors but also might discourage debt investments in the European Union.

Application of geometric flow and bandelet coefficient combining method to image fusion

Based on the theory of Bandelet transformation, we use Beamlab200 toolbox and Matlab software, adopt new construction of geometric flow and Bandelet coefficient combination method, apply new introduction of smaller absolute value rules, and take advantage of usage of computer simulation to experiment image fusion to explore the coefficient combination method and new introduction of smaller absolute value rules for geometric flow and Bandelet and test effect of their application to image fusion. The result after the experiment proves that this method is superior than the Beamlab 200 toolbox method in terms of running time, convergence speed, standard deviation, signal-to-noise ratio, gradient and image effect. The method can be applied to repair damaged images and others according to the results.

The optic nerve drusen and haemodynamics.

The optic nerve drusen (DON) are precisely described in many papers. But fewer papers evaluate real haemodynamics parameters (HP) in DON. Clinically, it has been shown, that the development and progression of visual field changes in DON is closely related to the hemodynamics of the ocular vascular supply - the optic nerve. DON can visually overlap the excavation optic disc, making it difficult to evaluate scotomas of the visual field in glaucoma. HP was prospectively evaluated in 54 patients with compensated intraocular pressure and DON. The drusen at the optic nerve head have been detected by fundus examination and B-scan ultrasonography (USG). DON were divided into 3 groups according to the size of the individual drusen or the drusen complex. I. Group: area size up to 1.9 mm. II. Group: area size: 1.9 - 3.9 mm. III. Group: area size: 4,0 mm. HP - maximum systolic velocity (MSV), minimal diastolic velocity (MDV) and resistance indices (IR) and index pulsatility (IP) - were recorded at the central retinal artery (CRA), at the central retinal vein (CRV), at ciliares posteriores arteries breves (CPAb) and at the ophthalmic artery (AO). The values were divided into 3 groups: 1 - Physiological: CRA: 8.7 ± 0.9 / 2.9 ± 0.6 cm/sor RI: 0.70 ± 0.05. 2 - Slightly impaired: CRA: 6.6 ± 0.8 / 2.0 ± 0.5 cm/s, or RI: 0.75 ± -0.04. 3 - Significantly impaired: CRA: 5.2 ± 1.2 / 1.9 ± 0.7 cm/sec or RI: 0.79 ± 0.03. There was no linear relationship between size of DON and HP. Slight worsening of HP at the CRA was in I. Group (28.6 %), II. Group (48.3 %) and III. Group (62.4 %). Significant worsening of HP at the CRA was I. group (28.6 %), II. Group (48.3 %) and in III. Group (62.4 %). HP of the CPA and of the OA were not significant due to the presence and size of drusen. The relationship between individual variables was evaluated using the Pearson correlation coefficient 0.213. I. Group P: 0.354, II. Group P: 0.073, III. Group P: 0.287. HP is more often impaired in „large“ DON (Group III), rarely in Group I, but this is not arule. HP cannot be predicted according to the size of the druse formation at the optic nerve. It seems that the deterioration of HP depends not only on the DON size but also on the location (the distance from the lamella cribriformis) and also to the vascular system intrapapillary.

Fault Management Based on Systems Description as Directed Graph With Absolute Dependence Relations

A new systems description method that utilizes graph theory for systems modeling is presented. The new method represents the system in terms of a directed graph, where each system component is represented by a vertex and dependencies between system components are represented by directed edges, also called arcs. The absolute dependence rule is introduced as the criterion for the analysis of a system into the graph representation. Together with the concept of an elementary component of a system, the proposed systems description method is applicable to a wide variety of systems for fault diagnosis, reliability engineering, and other system modeling and system architecture design purposes. The application of the new method for fault diagnosis is demonstrated in this paper by developing a novel fault management algorithm, and connections with several other systems description methods are presented.

Absolute and Relative Decision Processes in Eyewitness Identification

SummaryA prominent and long‐standing theory of eyewitness identification decision making distinguishes between absolute judgments, based on the lineup members' match to the witness's memory of the perpetrator, versus relative judgments, based on match values relative to other lineup members. This distinction was implemented in a computational model and simulations showed that the model predicts an accuracy advantage for absolute judgments over relative judgments under some conditions. The present experiment tested this prediction by evaluating the accuracy of witnesses instructed to use relative or absolute rules. Contrary to predictions, the overall analysis did not show an absolute advantage. Additional exploratory analyses showed a relative advantage when the suspect was surrounded by high‐similarity foils. These results are consistent with a model that assumes that side‐by‐side comparisons of lineup members increase diagnostic accuracy by allowing witnesses to give greater weight to more diagnostic features and less weight to less diagnostic features.