Ask Before You Sign That Lender-Developer Side Agreement
Law360, New York (September 5, 2013, 11:52 AM EDT) -- When unforeseen or unusual circumstances arise during the term of a construction loan, a lender and a developer may agree to modify the terms of the loan in order to allow construction to continue. Normally, the parties modify the existing loan agreements. However, in certain circumstances, the parties may enter into a new side agreement.
In Citizens Business Bank v. Alexis M. Grevorgian, decided Aug. 1, 2013, the California Court of Appeal for the Second District reaffirmed the importance of obtaining the consent of subordinated sellers before entering into such an agreement.
In Citizens Business Bank, a trust purchased three residential...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!