NY Court Finds Lenders May Rely on Borrower's Representations About Financial Statements Without Conducting Their Own Audit | Practical Law

NY Court Finds Lenders May Rely on Borrower's Representations About Financial Statements Without Conducting Their Own Audit | Practical Law

An update on the New York Court of Appeals decision in DDJ Management, LLC v. Rhone Group LLC holding that lenders may reasonably rely on a borrower's representations and warranties about the accuracy of  its unaudited financial statements.

NY Court Finds Lenders May Rely on Borrower's Representations About Financial Statements Without Conducting Their Own Audit

by PLC Finance
Published on 25 Jun 2010 • New York
An update on the New York Court of Appeals decision in DDJ Management, LLC v. Rhone Group LLC holding that lenders may reasonably rely on a borrower's representations and warranties about the accuracy of its unaudited financial statements.