Like it or not, the electronic age has envaded virtually every corner of our lives. And corporate law is no exception. In a world which once required wax seals to make contracts "legal," today parties can enter into multi-billion dollar contracts with merely the click of a mouse.
I'll be speaking on the current state of e-corporate law under federal law and Texas and Delaware state law on February 10 at the Belo Mansion in Dallas as part of the UT-CLE Securties Regulation and Business Law Conference.
Thanks for being a part of my blog during 2010.
Have a happy and prosperous New Year!
Friday, December 31, 2010
Friday, December 10, 2010
Delaware Usury Exemption
Why is Delaware considered to have a friendly legal environment for corporations? Well, for a lot of reasons.
One reason I will be focusing on in this post is its usury law. More specifically, Delaware has a broad and clear exemption from its usury law for transactions over $100,000.
Many states cap the amount of interest a lender can charge a borrower, thereby limiting the access to loans for many businesses with weaker credit.
In Delaware, a lender may legally charge any rate of interest for a loan over $100,000 which is not secured by a mortgage against a principal residence of the borrower. See Section 2301(c) of the Delaware Commerce and Trade Code.
One reason I will be focusing on in this post is its usury law. More specifically, Delaware has a broad and clear exemption from its usury law for transactions over $100,000.
Many states cap the amount of interest a lender can charge a borrower, thereby limiting the access to loans for many businesses with weaker credit.
In Delaware, a lender may legally charge any rate of interest for a loan over $100,000 which is not secured by a mortgage against a principal residence of the borrower. See Section 2301(c) of the Delaware Commerce and Trade Code.
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