News & Analysis as of

Borrowers Interest Rates

Eversheds Sutherland (US) LLP

Texas Supreme Court announces new method of calculating maximum interest for commercial transactions

On May 23, 2025, the Texas Supreme Court redetermined the method for calculating the maximum allowable interest for commercial loans under Chapter 306 of the Texas Finance Code. The decision is a radical change in how...more

Sheppard Mullin Richter & Hampton LLP

Texas Supreme Court Issues New Interpretation of Texas Usury Law

On May 23, the Texas Supreme Court issued an opinion holding that in determining whether a commercial loan is usurious under Texas state law, the “actuarial method” must be employed. This requires the applicable amount of...more

J.S. Held

Lending Climate in America – 2nd Quarter 2025 Survey

J.S. Held on

Lender confidence in the US economy’s performance over the next six months is waning due to concerns over the impacts of tariff uncertainty and the possibility of a recession. Meanwhile, lenders believe the Fed will cut...more

White & Case LLP

Delayed-draw facilities: A key differentiator in a competitive market

White & Case LLP on

Competition between the private credit and broadly syndicated loan (BSL) markets is intensifying, with developments on both sides blurring the distinctions between the two products. One of these distinctive features is the...more

Orrick, Herrington & Sutcliffe LLP

Texas Supreme Court answers Fifth Circuit’s question on loans in ruling

On May 23, the Supreme Court of Texas ruled that the maximum permissible interest on a loan must be calculated using the declining principal balance rather than the initial total principal amount. This decision was in...more

Katten Muchin Rosenman LLP

Maximum Interest Must Be Calculated Using the Actuarial Method Resulting in Lower Interest Charges as Principal Balance Declines

Commercial lenders in Texas should be made aware of the Texas Supreme Court’s new decision in American Pearl Group, LLC v. National Payment Systems, LLC, No. 24-0758. In that case, the Court clarified the “actuarial method”...more

Partridge Snow & Hahn LLP

Tax-Exempt Financing for 501(c)(3) Borrowers – Part I: Eligibility and Issuance

When borrowing for capital projects, 501(c)(3) borrowers often have various options to achieve their financing goals. Traditional financing through a bank or engaging in specific capital campaign fundraising efforts are...more

Skadden, Arps, Slate, Meagher & Flom LLP

Servicemember Financial Protections Emerge as a Trump Enforcement Priority

Key Points - - The CFPB and DOJ have recently prioritized enforcement of federal servicemember protections. - The Servicemembers Civil Relief Act and Military Lending Act provide key protections such as interest rate caps,...more

ArentFox Schiff

The End of LIBOR: Hotel California Edition [Part IV]

ArentFox Schiff on

During the transition of the London InterBank Offered Rate (LIBOR) to the approved substitute benchmark in the United States, the Secured Overnight Financing Rate (SOFR), a basic question was raised as to whether the new...more

Rivkin Radler LLP

“Hey Mom, Can I Have A Few Bucks?” Is It A Loan? A Gift? A Little of Each?

Rivkin Radler LLP on

A parent will sometimes transfer money to a child to enable the child to make an investment that the child could not otherwise make on their own. For example, the child may have identified an attractive business opportunity...more

Orrick, Herrington & Sutcliffe LLP

Virginia governor vetoes law that would have restricted fintech lending

On March 25, Virginia Governor Glenn Youngkin vetoed a bill, SB 1252, which would have subjected persons “[m]aking, offering, assisting, or arranging a debtor to obtain a loan” to the state’s 12 percent usury limit. The bill...more

Cadwalader, Wickersham & Taft LLP

Springtime for Alternative Currencies, March 2025 - Updated State of Play of Alternative Currency Benchmark Rates

With four major interest rate benchmarks ceasing to be published by the end of last year, we thought now would be a good time to provide a refresher on alternative currency rates. In this article we first discuss the key...more

ArentFox Schiff

The End of LIBOR: Hotel California Edition [Part III]

ArentFox Schiff on

During the London InterBank Offered Rate (LIBOR) transition, and post LIBOR’s end date of June 30, 2023, the goal for all should be that (1) the effective interest rates be generally economically equivalent as a result of the...more

DarrowEverett LLP

2025 Commercial Real Estate Outlook: Projecting Where Rates Go

DarrowEverett LLP on

The Federal Reserve (the “Fed”) continues to implement policies aimed at stimulating the economy, including lowering the federal interest rate by 25 basis points in early December (for a combined decrease of 100 points since...more

J.S. Held

Lending Climate in America – 4th Quarter 2024 Survey

J.S. Held on

Lender optimism toward the US economy is on the rise in the near term following the presidential election and is expected to continue that upward trend heading 2025. Meanwhile, interest rates and consumer activity are the two...more

White & Case LLP

US borrowers capitalize on repricing window

White & Case LLP on

Repricing issuance in US leveraged loan markets has surged in 2024, presenting borrowers with the opportunity to lower their financing costs - US loan repricing activity has approached near-record levels in 2024, with...more

McGlinchey Stafford

Lender FAQs: Understanding Texas Home Equity Loan Modifications

McGlinchey Stafford on

As interest rates decline in 2024, lenders who make home loans to Texas residents are seeing an uptick in loan modification requests. Although a “mod” for a conventional loan is straightforward, there are – as always – unique...more

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Borrower’s Approach to The Real Estate Mortgage Loan Workout

Many owners of commercial properties across the country encumbered by mortgage debt are still struggling to navigate the distressed real estate market, primarily due to their inability to pay current debt service resulting...more

Orrick, Herrington & Sutcliffe LLP

CFPB says 2024 federal student loan interest rates will cost borrowers

On September 13, the CFPB published a blog post stating that higher student loan interest rates could cost students over $3 billion in the aggregate in additional interest for loans taken out in 2024. The Bureau reported that...more

Seward & Kissel LLP

"So Long Synthetic LIBOR"

Seward & Kissel LLP on

Earlier this year, the Financial Conduct Authority (FCA) exercised its powers pursuant to Article 21(3) of the Benchmarks Regulation to compel ICE Benchmark Administration (IBA) to continue publishing 1-month, 3-month and...more

J.S. Held

Lending Climate in America – 3rd Quarter 2024 Survey

J.S. Held on

With inflation still affecting the US economy, lenders are now focused on the economic impact of the upcoming presidential election. Lenders’ expectations for the US economy’s performance in the longer term – beyond the next...more

IR Global

Could an interest rate reduction reduce government expenditure?

IR Global on

A 1% reduction in the Bank Rate would reduce the UK government's annual interest charges on the national debt, but the exact amount of the reduction depends on the proportion of the debt that is sensitive to changes in...more

Cooley LLP

Court of Appeal Provides Comfort to Lenders on Default Interest Clauses

Cooley LLP on

In Houssein & Others v. London Credit Ltd & Another[1], the Court of Appeal considered the proper application of the common law rules on penalties to a default interest clause in a loan agreement. Contrary to the conclusion...more

Tonkon Torp LLP

The Cost of Money

Tonkon Torp LLP on

Although high interest rates may no longer be headline news, loan obligations remain a driving source of stress for many business owners. Loan financing is fundamental (and often unavoidable) for many businesses. Loans can...more

Ballard Spahr LLP

FirstCash Files Motion for Partial Summary Judgment in Case Filed by CFPB

Ballard Spahr LLP on

FirstCash, a national pawnshop chain, is asking a federal judge to confirm that it has a statutory defense to all of the CFPB’s claims that it violated the Military Lending Act (MLA) while also asking the judge to drop three...more

143 Results
 / 
View per page
Page: of 6

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