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Loans Loan Agreements Interest Rates

DLA Piper

Understanding the Impact of MOICs on MFN Provisions in Private Credit Transactions

DLA Piper on

The Most Favored Nation (MFN) provision in a loan agreement is a lender protection mechanism that is typically seen in credit facilities permitting an uncommitted incremental facility. The MFN provision, a term originating...more

Jones Day

Cure and Reinstatement of Defaulted Loan Under Chapter 11 Plan Requires Payment of Default-Rate Interest

Jones Day on

Section 1124(2) of the Bankruptcy Code gives chapter 11 debtors a valuable tool for use in situations where long-term prepetition debt carries a significantly lower interest rate than the rates available at the time of...more

Lowenstein Sandler LLP

Drafter Beware: Recent New York Decision Reaffirms the Continuing Vitality of Public Policy in Enforcing Choice-of-Law Provisions

Lowenstein Sandler LLP on

Every day, attorneys act as advisors to parties negotiating and drafting contracts. Among those terms often left to the lawyers are choice-of-law provisions. Which state’s law governs a dispute, in theory, should not...more

Freiberger Haber LLP

Is it A Usurious Loan or The Sale of a Receivable?

Freiberger Haber LLP on

By: Jeffrey M. Haber In our last article (here), we examined a choice-of-law provision that, if applied, would violate New York public policy concerning usurious loans. In that case, Virginia law, which does not prohibit...more

Troutman Pepper Locke

Michigan Supreme Court Refuses to Enforce Usury Savings Clause in a Commercial Mortgage

Troutman Pepper Locke on

In Soaring Pine Capital Real Estate & Debt Fund II, LLC v. Park Street Group Realty Services, LLC, the Michigan Supreme Court considered whether a court may enforce a usury savings clause in a mortgage agreement. A usury...more

Ervin Cohen & Jessup LLP

Default Interest Rates on Principal Illegal Under California Law?

As interest rates rise, borrowers may find themselves in default, facing lenders who overreach by seeking to recover default interest in addition to regular interest on the principal of the loan. Borrowers may have a weapon...more

Orrick, Herrington & Sutcliffe LLP

L'Efficacia della clausola floor nei contratti di finanziamento

“Nel contratto di mutuo non è giuridicamente configurabile un tasso di interesse negativo che incida sul capitale mutuato. Conseguentemente, quando il tasso d’interesse sia stato pattuito in misura variabile, esso non può...more

Skadden, Arps, Slate, Meagher & Flom LLP

Loan Market Shows Signs of Rebound Following Volatile End of Year

After the 2018 fourth quarter roller coaster ride, when borrowers were essentially shut out of the leveraged loan market, the start to the new year has been tentative. Despite improved market conditions, leveraged loan volume...more

Tonkon Torp LLP

LIBOR’s Days Are Numbered - What Should A Commercial Borrower Do?

Tonkon Torp LLP on

LIBOR, a key interest-rate benchmark for commercial loans, is published daily by the UK’s Financial Conduct Authority (FCA). After December 31, 2021, the FCA will no longer require banks to submit their daily rates, which...more

Troutman Pepper Locke

Remand Decision in Madden v. Midland Funding Raises Questions Regarding Choice of Law Clauses in Consumer Loan Agreements

Troutman Pepper Locke on

A careful parsing of state laws should be done if a lender is relying on a choice of law to avoid states that have criminal usury statutes. On February 27, the U.S. District Court for the Southern District of New York...more

K&L Gates LLP

Default Interest -The Doctrine of Penalties Revisited

K&L Gates LLP on

Recent developments in the law of penalties mean that lenders should carefully review how their default interest provisions operate and whether the amount claimed as default interest can be justified as a genuine pre-estimate...more

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