Honchariw v. FJM Resources
In a recent California Appeals Court case, the Court prohibited charging default interest on the principal loan balance when there is only a payment default and not a maturity default. This means that all business purpose loans can no longer charge default interest in the state of California unless the maturity date has passed. This case has huge national implications as default interest is rarely litigated and other states may look to the holding of this decision to similarly prohibit charging default interest.
About Geraci
Geraci Law Firm is the nation’s largest law firm dedicated almost exclusively to the private/non-conventional lending space and is the leading legal resource for specialty lenders, asset-based lenders, private lenders, and non-bank institutions.
Our legal departments include Banking & Finance, Corporate & Securities, and Litigation & Bankruptcy, offering lenders a vertically integrated suite of services while our Geraci Conference Line provides networking and educational opportunities to the industry at large.
Reach out today to see how we can partner together.
