The Clearing House Association, along with nine other trade associations, filed an amicus brief before the U.S. Supreme Court in RadLAX Gateway Hotel, Inc. v. Amalgamated Bank. The case involves the right of secured lender to “credit-bid” on collateral that is being sold by a bankruptcy trustee by using the outstanding balance on its loan to pay the purchase price of the collateral, arguing that this right applies in a reorganization plan under Chapter 11 of the Bankruptcy Code and that the debtors’ attempt to sell mortgaged property free and clear of the secured lender’s lien without allowing the lender to credit bid is inconsistent with the Bankruptcy Code. On May 29 the Supreme Court affirmed the judgment of the 7th U.S. Circuit Court of Appeals in RadLAX Gateway Hotel LLC et al. v. Amalgamated Bank. The Court confirmed that a secured creditor cannot be denied the right to “credit bid” on collateral that is being sold by a bankruptcy trustee by using the outstanding balance on the creditor’s loan to pay the purchase price of the collateral.