This notice, under Fifth Circuit precedent, abandoned the lender’s intent to accelerate a note obligation: To the extent you have received demand letters with intent to accelerate the obligations under the above subject Note and any notice of acceleration of … Continue reading
Before a lender may accelerate a debt (and later foreclose), Texas law requires that the lender send (1) notice of intent to accelerate, followed by (2) notice of acceleration. While “Texas courts have not squarely confronted whether a borrower is entitled to a new … Continue reading
The question in Bank of New York Mellon v. GC Merchandise Mart LLC was whether the acceleration of a note triggered a $1.8 million prepayment penalty, when the debtor had ceased making payments on the note. No. 13-10461 (Jan. 27, 2014). The … Continue reading
“[T]he plain language of the [Louisiana Lease of Movables Act] forbids a lessor from both repossessing leased equipment and collecting accelerated future rental payments. Because the Lease’s liquidated damages clause authorizes just this combination of remedies, the district court properly … Continue reading
Cox v. Provident Life involved a dispute about the cause of the plaintiff’s knee problems: “Under the policies, Cox is entitled to receive disability benefits for life if, and only if, his disability resulted from injury rather sickness.” The record showed that: … Continue reading
In the fourth opinion in recent months about whether a mortgage servicer waived acceleration of the loan by inconsistent conduct, the Fifth Circuit again rejected such an argument in Martin v. Fannie Mae: “Wells Fargo accepted payments only after [the … Continue reading
U.S. Bank sent notices of acceleration, and began foreclosure proceedings, several times before suing for judicial foreclosure. The borrowers contended that suit was time-barred. The Fifth Circuit disagreed, finding that the bank’s second notice “unequivocally manifested an intent to abandon … Continue reading
One party to a settlement made the last installment payment several weeks late, triggering an acceleration clause that led to more liability. Celtic Marine Corp. v. James C. Justice Co., No. 13-30712 (July 29, 2014). The parties had this email … Continue reading
