Loans, Default, Contract Terms

A Borrower Defaulted: Now What? Your Critical First Steps

Shipman & Goodwin LLP on 4/30/2025

When a borrower defaults under a loan agreement, you face a dual challenge: time pressure demands swift action, while legal complexities require precision. Whether confronting missed payments, breached financial covenants, or...more

Late Fees on a Balloon Payment Due at Maturity

Baker Donelson on 1/22/2025

In 2025, an estimated $600 billion in commercial real estate loans are scheduled to mature. While the interest rate environment has stabilized somewhat over the past year, rates have not fallen as far as borrowers had hoped,...more

Absolute discretion? Absolutely!

A&O Shearman on 1/16/2023

An express absolute discretion has been held to be just that. It was not restricted by any implied duty to act in good faith or Braganza-style duty....more

Magic Words Still Matter, and Equitable Defenses Can’t Save a “Void” Transfer

Farrell Fritz, P.C. on 9/19/2022

New York’s default rules regarding LLC members’ rights to transfer their interests appear in sections 603 and 604 of the LLC Law. Section 603 provides that a membership interest is fully assignable, but the assignee does not...more

Invoking MAC Clauses During the Pandemic

Rosenberg Martin Greenberg LLP on 3/31/2020

Although Material Adverse Change (“MAC”) clauses are quite prevalent in loan and financing documents, there is very little case law in Maryland dealing with the successful or unsuccessful enforcement of these clauses. With...more

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

Skadden, Arps, Slate, Meagher & Flom LLP on 6/18/2019

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

Loan Guaranties: Statutory and Legal Defenses Can Be Waived, But What About Equitable Defenses?

Patton Sullivan Brodehl LLP on 9/1/2018

Guarantors of loans occupy a vulnerable position under California law. While direct borrowers often benefit from California’s robust statutory anti-deficiency framework, those protections are often unavailable for...more

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