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Commercial Borrowers: It Doesn't Pay To Pay Early

Publisher: New Jersey Law Journal
May 19, 2014

The New Jersey Law Journal published an article written by Day Pitney partner Joy Harmon Sperling and associate Sarah A. Sakson on May 19. The column discusses a recently published New Jersey Appellate Division ruling which clarified that New Jersey's Prepayment Law, N.J.S.A. 46:10B-1 to -11.1, which prohibits the imposition by a lender of a prepayment penalty in connection with the pay-off of a residential mortgage, does not apply to commercial transactions. According to the authors, the decision is a "welcome reassurance for banks, which oftentimes include prepayment penalty provisions in commercial loans to protect the banks' interests in the event of market changes."

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