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Lenders Liquidated Damages

Buchalter

Caution to Lenders – New Pitfalls to Imposing Default Interest and Late Fees on Defaulted Loans

Buchalter on

On September 29, 2022, the California Court of Appeal First Appellate District, in Honchariw v. FJM Private Mortgage Fund, LLC, held a private lender’s imposition of late charges and default interest constituted an unlawful...more

Procopio, Cory, Hargreaves & Savitch LLP

California Appellate Court Invalidates the Ability to Obtain Default Interest on Loans That Have Not Matured

When a late fee is assessed upon the entire principal balance of the loan, is it invalid when the loan is not fully matured? This question, so important to lenders, has been addressed in California after the conclusion of...more

Snell & Wilmer

California Supreme Court Refuses To Hear Default Interest Case

Snell & Wilmer on

On December 21, 2022, the California Supreme Court denied review of a controversial Court of Appeal decision from earlier last year that prohibited lenders from charging default interest against the principal balance of any...more

Skadden, Arps, Slate, Meagher & Flom LLP

Recent Developments in the Enforceability of Make-Whole Premiums in the Second Circuit

In March 2019, Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York ruled that lenders using clear and unambiguous language in their loan agreements may be entitled to prepayment...more

Jones Day

Fifth Circuit Suggests Claims for Make-Whole Amounts Should Be Disallowed

Jones Day on

The Situation On January 17, 2019, the Fifth Circuit strongly suggested that claims for make-whole damages be characterized as "unmatured interest" and that claims for postpetition interest on unsecured debt be limited in...more

Akin Gump Strauss Hauer & Feld LLP

A Legal and Commercial Checklist for Bankable Solar EPC Contracts: A Developer’s Guide

Large-scale solar development is big business, and solar EPC Contracts are big business by association. In Q2 2017, the U.S. solar market installed 2,387 MWdc, an 8% increase year-over-year, and the largest second quarter...more

Clark Hill PLC

Getting Comfortable with Lender Comfort Letters

Clark Hill PLC on

As the global real estate economy continues its recovery from the severe economic recession nearly a decade ago, hotel and hospitality real estate transactions have been robust as of late. According to the "Hotel investment...more

Clark Hill PLC

Recent Arizona Case Law and Other Developments Affecting Real Estate Lending

Clark Hill PLC on

Recent Arizona Case Law - Dobson Bay Club II DD, LLC v. La Sonrisa De Siena, LLC (AZ Court of Appeals 2016). The borrowers signed a $28.6 million note and DOT to CIBC. The note required interest-only payments with a...more

Carlton Fields

Drafting A Takeover Agreement

Carlton Fields on

This article discusses the issues an owner, lender, completion contractor, and surety should consider when drafting a takeover agreement. Although each of these four main parties may share the basic goal of seeing the project...more

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