In their Real Estate Transactions column, Todd E. Soloway and Stephanie R. Kline of Pryor Cashman write: It is essential that when structuring loan transactions, lenders remain cognizant of the equity of redemption principle, and avoid including any provision at the outset which would interfere with the borrower's right to discharge a debt prior to a foreclosure sale. By making adjustments in timing and structure, coupled with appropriate contractual provisions, lenders can achieve their lending criteria while still protecting themselves in a way that will ultimately be upheld by the courts.
Loan Structuring and the Equity of Redemption
New York Law Journal
October 30, 2013