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" The district court docket also found that "[t]he incontrovertible fact that [the secured creditor] was not inclined to lend the Debtor income for a going worry just isn't an equitable justification for denying it the conditions in the bargained-for default desire amount."
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Although the district court docket regarded as "all of the appropriate instances," the courtroom concentrated its Investigation on 3 variables:
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Due to absence of any binding or persuasive authority, the district court relied on pre-bankruptcy code authority that applied equitable factors to your Investigation. In doing so, the district court docket held the "instruction to equilibrium the equities stays."
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The district court proposed that the magnitude on the default desire and the scale from the spread among the default fee and the deal rate are elements find more information that should be deemed.
Listed here, the secured creditor's predecessor extended the personal loan to your debtors as exit funding from their earlier bankruptcy, which supported the awarding of contractual default interest fee.
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