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- 48% and Void: When “Default Interest” Becomes an Unenforceable Penalty
48% and Void: When “Default Interest” Becomes an Unenforceable Penalty

Stipe Vuleta of Chamberlains looks at a NSW Supreme Court decision finding that a 48% default interest rate was an unenforceable penalty, while also highlighting the importance of properly drafted conclusive-evidence certificates, evidencing enforcement costs and using severability clauses to preserve otherwise valid lending terms.