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Contracts Keyed to Kuney
Trident Center v. Connecticut General Life Insurance Co.
Citation:
847 F.2d 564 (1988).Facts
In 1983, multiple companies formed a partnership (Trident) in order to construct an office building complex. The partnership obtained financing from Connecticut General. The $56,500,000 loan was for a term of 15 years at 12.25% interest. The note provided that the “[m]aker shall not have the right to prepay the principal amount hereof in whole or in part” for the first 12 years. It also provided that the Holder had the option to accelerate the loan or to declare a default.
Around 1987, interest rates began to drop and Trident started to look for ways to refinance the loan to take advantage of the lower rates. Connecticut General refused to allow Trident to prepay the loan and insisted the loan could not be prepaid until January 1996.
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