Knows Your PIK Part 2
PIK Borrowers PIK interest loans benefit borrowers when they have significant growth potential but temporary cash constraints, need to conserve cash in periods of underperformance, or face a lack of equity funding or uncertain liquidity options. These types of borrowers are not serviced by traditional banks or ABL lenders. Borrowers seeking PIK interest loans in […]
Knows Your PIK Part I
Paid-In-Kind (PIK) interest features allow borrowers to add interest to the principal of a loan versus making cash payments. This is different than traditional interest payments where borrowers pay interest in cash at regular monthly or quarterly intervals. A growing number of private market loans are being structured or amended to include PIK interest in […]
Web Scraping vs. Terms of Use
Data scraping extracts and copies data from websites. Often this is done to train AI large language models. Because scraped data commonly includes user-generated content and personal information, many companies explicitly prohibit data scraping through their terms of use. This includes X (formerly Twitter) which tried to enforce its anti-scraping terms of use. X’s argument […]
Key Tenant Issues In Data Center Leasing Agreements
Leasing a data center is a strategic decision that comes with unique challenges. Here are some of the critical issues you should be aware of before signing a data center lease. 1. Security and Access Data centers house critical infrastructure, making security a top priority. Here are some considerations: 2. Maintenance Responsibilities Data center tenants […]
Choosing A Law Firm: Supersizing Often Fails
Would you hire a vendor that does not properly regard conflicts of interest? Fails to abide by basic business rules and laws? Loses you in the shuffle of other and larger clients? Violates its own internal procedures? Of course not. Yet business owners do this every day when engaging law firms. So please accept this […]
Liquidated Damages In Real Estate Agreements
Liquidated damages provisions must be given careful consideration when negotiating a real estate agreement. Liquidated damages provisions usually appear as “earnest money” or a “non-refundable deposit” to set forth the negotiated amount of money that a seller can retain if a buyer breaches a purchase and sale agreement. Buyers are generally entitled to a return […]
AI and the Future of Contracts
Contract negotiations and interpretations present unique challenges for AI. For millennia contract law has been all about contextual understanding, personal analyses, concern for the future, and preventing (or creating) ambiguities. These issues are why solely relying on AI to draft contracts is unwise. Unsurprisingly, AI-generated contracts lack the ability to adapt for changes in the […]
Intercreditor Agreements
Intercreditor agreements are key. This is particularly true for real estate investors.
AI: Choice of Law Provisions
One of my favorite “boilerplate” provisions now needs even more analysis. With state legislatures passing legislation and state court starting to issue rulings the choice of law governing your contract is more important than ever. The most notable state is California. Straightforward compliance with the California Consumer Privacy Act is not the whole battle because […]
Supply Chain and Pricing
“Supply chain issues” is the post-Covid version of saying “the check is the mail.” It is a perfect analogy. When a person blames the post office, that person is blindly blaming everyone from the clerk at the post office to the person who delivers your mail plus an untold number of people who have […]
