According to the law, investors who say they were duped into buying flawed mortgages have six years to sue. However, New York’s highest court is currently trying to figure out when that clock starts. Is it when the bonds were packaged or after problems with the loans came to light? Per Bloomberg:
Paul Clement, a lawyer for the trustee, told the court that the six-year statute of limitations begins to run only after the flaws are discovered — and not, as the bank argued, when the bonds were packaged and sold years earlier.
“This is a contract that extends for 30 years,” Clement said, referring to a legal agreement related to the bonds. “It would be odd for investors to put themselves in a position where they would be unprotected for the last 24 years.”
