Practice Pointer: When Should You Send Default and Demand Letters?
“… there are times when a lender will want to start enforcing one or more rights or remedies. In all or almost all jurisdictions in the United States, a lender is required to provide a written notice of default to the borrower and guarantors, and to make a written demand for payment, before exercising any rights or remedies. In many jurisdictions, however, a borrower or a guarantor can waive these requirements in the loan documents, and many loan documents contain such waivers,” writes Cara M. Houck and Steven A. Roach in Miller Canfield’s Resources.
“This begs the question of whether to send a default and demand letter.”
