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Company hires and sector developments in structured finance

Accrual clause nixed

The New York State Court of Appeals last week held that contractual attempts to extend the statute of limitations for causes of action involving breaches of contract are unenforceable because they violate New York law and public policy. In the case at issue, the plaintiff (Deutsche Bank National Trust Company) argued that the accrual clause in Harborview Mortgage Loan Trust 2007-7 created a substantive condition precedent and that the accrual clause expressed the parties’ clear intent to delay accrual of a breach of contract cause of action until the specified events had occurred.

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