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Essay heading: Lender Liability and the Duty of Good Faith
 
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Issue: Social Issues
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Date added: December 22, 1997
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No of pages / words: 27 / 7298
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For example, in 1985 the Sixth Circuit, invoking the good faith performance obligation, affirmed a jury verdict awarding $7,500,000 to a borrower whose lender refused to advance funds under a loan agreement, which specifically and unequivocally permitted the lender to exercise sole and absolute discretion to refuse to advance additional funds...
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The Alaska Supreme Court, likewise invoking the good faith performance obligation, held that a borrower could recover both actual and punitive damages from a lender who had taken possession of collateral without notice, notwithstanding the unambiguous terms of the loan and security agreement authorizing such repossession...
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