California Court of Appeals Refuses to Enforce Default Interest Provision
By Adrian Reyna and David J. VogelMarch 22, 2024 A recent California 1st District Court of Appeal decision, Honchariw v. FJM Private Mortgage Fund, LLC (83 Cal. App. 5th 893) (“Honchariw”), held that default interest charged on the entire outstanding principal balance of a defaulted commercial loan constitutes an unenforceable penalty. The court’s decision in…
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