The plaintiff, a non-profit corporation (the "corporation") entered into negotiations to sell a community center to the Defendant, Hyman Levy ("Levy"). Levy deposited $2.7 million into an escrow account to demonstrate his interest in the property. When it became clear that the negotiations would take some time, that $2.7 million was converted to a loan to the corporation, secured by a deed of trust on the subject property.
Next, the Court scrutinized the terms of the note to determine whether the default interest rate was triggered at the time the note matured. As discussed above, the note recited that upon the corporation's default and at Levy's option, "all sums owing hereunder shall, at once, become immediately due and payable. Thereafter, interest shall accrue at the maximum legal rate permitted..." Levy did not dispute that this language constituted an acceleration clause.
Ralph T. Wutscher
McGinnis Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 551-9320
Fax: (312) 284-4751
Mobile: (312) 493-0874
NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.
Our updates are available on the internet, in searchable format, at: