In Re 785 Partners LLC

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• concluding that a five percent rate differential was not a penalty where the default rate “was designed to compensate the Original Lenders for the increased risk of non-payment and the costs associated with the Debtor’s default”
• noting that “[a] higher default interest rate reflects the allocation of risk as part of the bargain struck between the parties”
• noting that presumption is “subject to adjustment based on equitable considerations”
• noting the “rebuttable presumption that the oversecured creditor is entitled to default interest at the contract rate subject to adjustment based on equitable considerations”
• \Reducing the contract interest payable by a solvent debtor would unfairly grant a windfall to its equity.\
• explaining, in connection with pre-petition default interest, that “[a] higher default interest rate reflects allocation of risk as part of the bargain struck between the parties, a bargain that benefits the obligor as well as the obligee”

Source: CourtListener parenthetical corpus (CC0).