New Pennsylvania Superior Court Decision May Help Lenders Expedite Loan Recovery, But Also Frustrate BorrowersOn June 24, 2020 by Schnader in Finance
Jonathan W. Hugg published a client alert, “New Pennsylvania Superior Court Decision May Help Lenders Expedite Loan Recovery, But Also Frustrate Borrowers.”
Commercial lenders and creditors in Pennsylvania may benefit from the Pennsylvania Superior Court’s June 17, 2020 decision in SDO Fund v. Donahue. The Court ruled that a commercial lender could confess judgment multiple times against a personal guarantor using the same warrant of attorney when the clause contained explicit language allowing the lender to re-use it.
This is a new interpretation of the law. Pennsylvania courts had previously ruled that, whatever the language of a warrant of attorney, a creditor could use it just once to confess judgment.