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When Can a Servicer Keep Your Cash? The Seventh Circuit’s CMBS Cash-Sweep Ruling and What Borrowers Should Watch
A federal appeals court just revived a commercial borrower's fight over a CMBS cash sweep that trapped millions in rental income — all because two clauses in the same cash-management agreement pointed in opposite directions. This episode breaks down what a cash sweep is, what the Aberdeen decision means for borrowers, and the drafting fix that prevents the dispute. Read the full analysis at https://htx-legal.net/cmbs-cash-sweep-excess-cash-flow-ambiguity-borrower-protections
The skinny
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