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Category Archives: Interest Rates

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Still Not Valid When Made

Posted in Circuit Split, Interest Rates, SCOTUS
made-in-usaLast year, we posted about Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015), where the Second Circuit Court of Appeals decided to ignore the “Valid When Made” doctrine.  This is the established common law doctrine that if a loan is non-usurious when made, it remains non-usurious when assigned to another creditor, even… Continue Reading

Investors Can Enjoy Bank’s Interest Rates Upon Sale

Posted in Default Rate, Interest Rates, Note Sales, Usury
Buying and selling distressed debt is common today. When buying promissory notes, buyers (i.e., future holders) may overlook whether they can actually charge the interest rate(s) charged by the note seller after closing. This issue comes up most when an individual or private company investor wants to buy a Bank asset or portfolio. At least… Continue Reading