RISC DECISION WILL CREATE MAJOR CONCERNS FOR SOME COMMERCIAL LENDERS

The laws of virtually every state prohibit lenders from charging interest on loans in excess of the "usury rate" - the maximum interest rate permitted under the laws of the state. However, usury statutes vary greatly from state to state. Not only do the maximum interest rates vary, but some states exempt certain loans, some count origination and other fees in the calculation of interest, etc.

As a result, simply stating an interest rate that, on its face, is less than the maximum rate permitted in a particular state is not always a guarantee that the rate is not usurious. In February, the Rhode Island Supreme Court decided NV One, LLC v. Potomac Realty Capital LLC. The case turned on the enforceability of a usury savings clause that, on its face, was both well drafted and typical of the clauses found in virtually all commercial loan documentation.

Whether or not one agrees with the court's reasoning, writes business attorney Bill Miller in a Rhode Island Lawyers Weekly commentary, the practical implications are clear. Read Attorney Miller's insightful explanation of the ruling and the issues now faced by some commercial lenders in the publication's March 31 edition by clicking on the link below.

Source:Ruling to create major concerns for some commercial lenders

No Comments

Leave a comment
Comment Information

Contact Our Firm And Schedule A Consultation

Work with our experienced team of lawyers. Call 866-353-3310 or email us today to schedule a consultation.

View Office Locations

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Email Us For A Response

Rhode Island
Northwoods Office Park
1301 Atwood Ave.
Suite 215 N
Johnston, RI 02919

Toll Free: 866-353-3310
Phone: 401-824-5100
Fax: 401-824-5123
Map & Directions

Wells Fargo Plaza
925 South Federal Highway
Suite 715
Boca Raton, FL 33432

Phone: 561-362-2030
Fax: 866-353-5020
Map & Directions

777 South Flagler Drive
Suite 800 - West Tower
West Palm Beach, FL 33401

Phone: 561-362-2030
Fax: 866-353-5020
Map & Directions

Massachusetts
75 Arlington Street
Suite 500
Boston, MA 02116

Toll Free: 866-353-3310
Fax: 866-353-5020
Map & Directions

901 Main Street
Suite O
Osterville, MA 02655

Phone: 508-420-7159
Fax: 508-420-7162
Map & Directions

GPS Directions to this office: 555 Valley Street, Providence, RI 02908