Loan Commitments and Agreements to Agree Under New York Law


The recent decision in Amcan Holdings, Inc. v. Canadian Imperial Bank of Commerce, 2010 NY Slip Op 00786, (“Amcan”) makes it difficult for borrowers to enforce commitments of lenders under term sheets. The Appellate Division of the Supreme Court of New York concluded that an executed “Summary of Terms and Conditions” describing a proposed financing formed only a non-binding agreement to agree, not a binding agreement obligating the lender to provide financing.

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