Seventh Circuit Upholds Yield Maintenance Prepayment Premium.

The article presents a court case between River East Plaza, L.L.C. and its lender, The Variable Annuity Life Insurance Co. The case which involved the prepayment of a loan after years of being closed, challenging the enforceability of the prepayment premium, was ruled in favor of the borrower by the district court in Illinois. However, the U.S. Court of Appeals for the Seventh Circuit disregarded the district court's application of a liquidated damage analysis.