Photo: Sutthiphong/Adobe Stock Mezzanine Loans and UCC Foreclosures: Recent NY Case Law on the Commercially Reasonable Standard
This article explores a recent case from the Southern District of New York that discusses certain requirements under the UCC related to the mechanism by which a secured party can dispose of its collateral upon an event of default by the borrower.
July 08, 2024 at 10:00 AM
8 minute read
During the last decade of lower interest rates and higher property values, commercial real estate borrowers had easy access to capital with high loan-to-value ratios. However, recent years saw increased competition for capital and lower loan-to-value ratios for commercial mortgage loans. The use of mezzanine loans are correspondingly making a resurgence to fill the gap between senior mortgage debt and borrower equity, and mezzanine lenders, among others, need to understand the laws that apply to exercising remedies on their collateral.
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