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Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: July 21, 2018

Court of Appeals Accepts Certified Questions Regarding Statute of Limitations for Unpaid Interest on Bonds

On June 12, 2018, the Court of Appeals accepted two certified questions from the Second Circuit in Ajdler v Province of Mendoza, No. 17‐2704‐cv:

1. If a bond issuer remains obligated to make biannual interest payments until the principal is paid, including after the date of maturity, do enforceable claims for such biannual interest continue to accrue after a claim for the principal of the bonds is time‐barred?

2. If the answer to the first question is “yes,” can interest claims arise as long as the principal remains unpaid, or are there limiting principles that apply?
ad infinitum?

The Second Circuit’s decision is available here.

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