Worldwide Economic And Credit Crisis Does Not Provide A Basis To Force A Renegotiation Of Loan Documents


In a recent case in the Commercial Division of the Supreme Court of the State of New York, Justice Bransten granted the lender’s motion for a $50 million summary judgment in lieu of complaint pursuant to CPLR §3213 based upon promissory notes and a guaranty, because borrowers failed to carry their burden to establish any viable defense. See KBS Preferred Holding I LLC v. Petra Fund REIT Corp., Index No. 601836/09 (Sup Ct, NY County, May 3, 2010) (“KBS”)."

Specifically, there was no dispute that “the Notes and Guaranty qualify as instruments for the payment of money only,” and there was also no dispute as to their execution and payment default. KBS at 13. Therefore, because the plaintiff lender “established a prima facie case pursuant to CPLR §3213,” the borrowers had the burden to “demonstrate the existence of a triable issue of fact relative to a bona fide defense.” KBS at 13-14.

The Court rejected each of the borrowers’ three defenses.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:


Sheppard Mullin Richter & Hampton LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.