Law360, New York (July 20, 2007, 12:00 AM EDT) -- In River East Plaza LLC v. The Variable Annuity Life Company, the District Court for the Northern District of Illinois shocked lenders with a ruling striking a standard yield maintenance clause, employing an often used formula for calculating a prepayment premium, as an unenforceable penalty under Illinois law (2006 WL 2787483 (N.D. Ill. Sept. 22, 2006)).
The opinion has since been subject to substantial and mounting attack from lenders and attorneys alike.
But as discussed here, lenders and their lawyers in and out of Illinois need...
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