Common Contracts
1 similar null contracts
ContractAugust 19th, 2014
of the requirements of section 408(b)(1) of the Act. The loan agreement provides that at the end of two years M must pay the remaining balance in full or the parties may renew for an additional two year period. At the end of the initial two year period, the parties agree to renew the loan for an additional two years. At the time of renewal, however, A fails to adjust the interest rate charged on the loan in order to reflect current economic conditions. As a result, the interest rate on the renewal fails to provide a ‘‘reasonable rate of interest’’ as required by section 408(b)(1)(D) of the Act. Under such cir- cumstances, the loan would not be exempt under section 408(b)(1) of the Act from the time of renewal.
