A Bankruptcy Court's Good-Faith Lesson To Lenders

Law360, New York (January 23, 2014, 12:43 PM ET) -- Does a lender have a duty to act in good faith when negotiating with a borrower during a commercial loan modification?

In an order issued recently by the United States Bankruptcy Court for the Eastern District of North Carolina, in In re Burcam Capital II LLC, the court denied a lender’s motion to dismiss a borrower’s claims against the lender. The borrower alleged that the lender’s failure to modify the terms of the loan constituted a breach of the lender’s obligation to deal with the borrower...
To view the full article, register now.