News & Analysis as of

Interest Rates Commercial Loans

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

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

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

Womble Bond Dickinson

The Risks of Debt Purchase Transactions

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The commercial real estate (CRE) industry is facing a looming wall of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. These staggering numbers are particularly troubling since refinancing...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

Rivkin Radler LLP

Zombie Companies’ Growth and Expansion: Should This Be a Surprise?

Rivkin Radler LLP on

On June 7, 2024, Bernard Condon, an Associated Press reporter, authored the article, “Zombies: Ranks of world’s most debt-hobbled companies are soaring, and not all will survive.” Condon’s article details zombie companies...more

Levenfeld Pearlstein, LLC

M&A Insights and Outlooks Regarding Financing: A Conversation with Gary Grote of Bridgepoint Investment Banking

Below is his conversation with Gary Grote, Managing Director at Bridgepoint Investment Banking, which focuses on capital raising and M&A advisory solutions. Gary focuses on deals in the healthcare, leveraged finance,...more

Womble Bond Dickinson

Essential Strategies for Managing Maturing CRE Loans in Today's Market

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The commercial real estate industry is facing an impending tsunami of $2 trillion in debt maturities, with an estimated $929 billion coming due this year. If you will be caught in this net because the loan secured by your CRE...more

Hudson Cook, LLP

New York Financing Arrangements Bill Would Have Major Implications for Commercial Financing

Hudson Cook, LLP on

A bill before the New York State Assembly would, if passed, have major implications for a variety of financing transactions in the Empire State. Titled the End Loan Sharking Act, Assembly Bill 9585 would subject a variety of...more

J.S. Held

Lending Climate in America – 1st Quarter 2024 Survey

J.S. Held on

With inflation continuing to impact the US economy, lenders are focused on the economic impact of the presidential election in November. Lenders’ expectations for the US economy’s performance in the longer term – beyond the...more

J.S. Held

Lending Climate in America – 4th Quarter 2023 Survey

J.S. Held on

Interest rates and inflation have been the big drivers of the US economy as of late, but lenders are increasingly optimistic for 2024, despite some challenges. Lenders foresee interest rate declines beginning in 2024 – with...more

WilmerHale

LIBOR Fallback to Prime May Increase Corporate Loan Costs

WilmerHale on

The London Interbank Offered Rate (LIBOR) officially ceased to be published on June 30, 2023. The change comes after almost 40 years of LIBOR serving as the principal benchmark rate for trillions of dollars of various...more

Lippes Mathias LLP

The Landscape of Commercial Lending Conditions and What May Come

Lippes Mathias LLP on

In recent years, U.S. banks have been tightening lending conditions. This trend is expected to continue for commercial loans because of various factors, including the ongoing effects of the COVID-19 pandemic, changes in...more

Goodwin

Debt Download - May 2023

Goodwin on

Welcome to Debt Download, Goodwin’s monthly newsletter covering what you need to know in the leveraged finance market. We hope you are enjoying the Spring weather! Note: Some of the links in this newsletter may redirect...more

Amundsen Davis LLC

Preparing Your Bank for Possible Turbulence in Commercial Real Estate

Amundsen Davis LLC on

Reports of potential trouble in commercial real estate lending have steadily increased this year. Per the Wall Street Journal, a record number of commercial mortgages are expiring in 2023. Prices for commercial...more

Goodwin

Private Equity Market Update - August 2022

Goodwin on

Market Overview - Q2 2022 - Downturn in Credit Markets: In its continued effort to combat rising inflation, the Federal Reserve Bank raised its benchmark interest rate in each of March, May, June and July of this year by...more

Pillsbury - Gravel2Gavel Construction & Real...

Real Estate & Construction News Round-Up (07/27/22)

Europe’s energy infrastructure struggles under record heat waves, Wall Street tightens commercial real estate lending, blockchain technology and NFTs (non-fungible tokens) continue to transform real estate ownership, and...more

Gray Reed

Could Corporate Convertible Loans be Subject to Criminal Usury Laws in New York?

Gray Reed on

In Adar Bays, LLC v. GeneSYS ID, Inc., the New York Court of Appeals (the “Court”) held that the conversion price in a convertible option could be classified as interest thereby potentially falling under the territory of New...more

Holland & Knight LLP

ARRC Issues Updated Recommended Fallback Language for Libor Bilateral Business Loans

Holland & Knight LLP on

The Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee (ARRC) in 2014 to develop an alternative rate and conversion methodology for the...more

Nutter McClennen & Fish LLP

Fintech in Brief: OCC Issues Final ‘Valid When Made’ Rule on Permissible Interest on Transferred Loan

On May 29, 2020, the Office of the Comptroller of the Currency (the “OCC”) issued a final rule (the “Rule”) confirming the validity of interest rates on bank loans transferred to third parties, including fintech affiliates....more

White and Williams LLP

Second Circuit Decision Addresses New York Usury Laws and Post-Default Mortgage Loan Obligations

White and Williams LLP on

On March 30, 2020, the U.S. Court of Appeals for the Second Circuit affirmed several holdings of the District Court for the Eastern District of New York requiring a commercial mortgage borrower to pay default interest at a...more

Polsinelli

COVID-19 Pandemic – Issues Relating to Interest Rate Hedges for Real Estate and Other Loan Borrowers

Polsinelli on

Borrowers under variable rate commercial loans commonly enter into interest rate hedge agreements to eliminate or reduce their exposure to the interest rate risk of their variable debt service obligations. ...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Late Penalties on Loan Payments in Arkansas – What's the Rule?

A frequently asked question in the lending community is whether there is an established amount regarding the maximum late fee that can be charged for a late payment made on a loan in Arkansas. Unfortunately, the answer to...more

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