Bankruptcy case highlights need for plain language in contracts

04/1/2013 | American Banker magazine

Lenders need to write their loan contracts using unambiguous language in order to be able to enforce make-whole premiums, writes Jean E. Herskowitz. That, at least, is the conclusion she suggests be drawn from U.S. Bank Trust National Association v. American Airlines. The court found the airline was not obligated to pay the make-whole premium after filing for bankruptcy based on the plain language of the agreement.

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