Tag Archives: contract

A $1.8 million Drafting Lesson

In a typical case of distressed borrower where the lender was left holding the unpaid debt bag,  the Fifth Circuit Court of Appeals chimed in on the hotly debated and litigated prepayment premiums litigation. In re Denver Merchandise Mart, 740 F.3d 1052 (5th Cir. 2014).  The lender was secured, with the accelerated $24 million note … Continue Reading

6 Months Later, Lenders Continue To Address ECP Issues

As most market participants are aware, the Dodd-Frank rule requiring all swap guarantors to be eligible contract participants ("ECP"s) under the Commodity Exchange Act became effective on March 31, 2013. Six months after effectiveness, lenders continue to address ECP issues under existing documents, and should be sure they are properly protected under new agreements.… Continue Reading

Anti-Assignment Provisions, Part Two – Legal Overrides

Following up on our last post, this time we'll take a look at the effect of the UCC on anti-assignment provisions in contracts. For example, if a license contains terms prohibiting assignment (and effectively prohibiting a lender from taking a security interest in the license), the UCC may override this prohibition and allow the lender to take and enforce a security interest in at least the right to receive payments under the license, if not more. This is good news for lenders. Read on to find out more.… Continue Reading