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  • Casual Articles - Yield Maintenance Fees-Part II: Applying Indiana Law

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    This is the second of a two-part article dealing with yield maintenance fees in the context of Indiana commercial foreclosure law. In Part I, I summarized the only three Indiana cases on point. I’ll now apply that case law and, given the rules, explore some of the decisions commercial lenders may face.

    The rules. The law from the Seventh Circuit and the Indiana Court of Appeals is definitive as to a few issues. The general rule is that reasonable prepayment provisions a

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    ndiana commercial foreclosure law. In Part I, I summarized the only three Indiana cases on point. I’ll now apply that case law and, given the rules, explore some of the decisions commercial lenders may face.

    The rules. The law from the Seventh Circuit and the Indiana Court of Appeals is definitive as to a few issues. The general rule is that reasonable prepayment provisions

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    . I’ll now apply that case law and, given the rules, explore some of the decisions commercial lenders may face.

    The rules. The law from the Seventh Circuit and the Indiana Court of Appeals is definitive as to a few issues. The general rule is that reasonable prepayment provisions

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    The rules. The law from the Seventh Circuit and the Indiana Court of Appeals is definitive as to a few issues. The general rule is that reasonable prepayment provisions

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    ls is definitive as to a few issues. The general rule is that reasonable prepayment provisions are enforceable. Thus yield maintenance fees (a/k/a prepayment premiums) can be recovered. But there is an exception if a lender accelerates the debt (forecloses). In that instance, the lender waives its claim to yield maintenance fees. In other words, an election to accelerate generally is an exclusive remedy that will preclude the recovery of yield maintenance fees.

    Payoff

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