How Donald Uderitz and NCSLT bond investors found friends in post-Harvey Houston while undergoing three haircuts

LIBOR FIX 2 TEXAS STYLE? A Houston Court of Appeals recently gave National Collegiate Student Loan Trusts three haircuts in three cases for failure to give proper notice of acceleration before suing on them, shaving off a few thousand dollars from each defendant's private student loan balance.But if you care about student loan sufferers, hold your breath. For the Court also did Mr. Donald Uderitz and NCSLT bond holders a huge favor by holding that the APR and monthly repayment amount estimates in the original Truth-in-Lending Disclosure Statements are enforceable as contract terms, effectively freezing the interest rates at the level they were at at the time of loan origination before the financial crash.The student loans at issue in Foster v. NCSLT 2007-4, Mock v. NCSTL 2007-4, and Savoy v. NCSTL 2005-3 (Tex. App. – Houston [1st Dist.] 2008) are all based on LIBOR. Like the US federal funds rate, LIBOR is a variable financial market index. As is well-known by…

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