Michigan Court Upheld $10 Million Loan Agreement
A court ruled that a high-value loan met statutory exemptions from state usury laws.
Updated on Oct. 7, 2026 in Financial Planning
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A Michigan court granted summary judgment to Private Financing Alternatives, LLC, confirming the validity of a $10 million loan agreement. The ruling affirmed that the loan was exempt from standard interest rate caps.
Why it matters
The decision provides clarity on how non-residential real estate loans are regulated under state law. It confirms that high-value commercial loans secured by specific property types remain exempt from general usury restrictions.
The loan was valued at $10 million, significantly exceeding the $100,000 threshold required for an exemption from the state's 25% usury rate limit. The court confirmed the loan was secured by a lien on non-single-family residential property.
The players
Private Financing Alternatives, LLC
This is the lender and plaintiff that initiated the legal action to enforce the promissory note.
Walloon Lake Holdings, LLC
This is the defendant and borrower associated with the $10 million loan agreement.
Matthew Borisch
He is one of the individual guarantors who signed for the loan on September 29, 2023.
Jonathan Borisch
He is identified as one of the parties who guaranteed the $10 million loan.
Mary Borisch
She is a named guarantor for the loan agreement that was the subject of the court's summary judgment.
The details
The court denied a motion for summary judgment from Walloon Lake Holdings, LLC, determining that the loan agreement was legally binding. The ruling cited Mich. Comp. Laws §438.31c(11) to justify why the specific security interest met the requirements for an exemption.
Timeline
The parties executed the $10 million promissory note on September 29, 2023.
The court issued the summary judgment ruling on October 6, 2026.
Market Dynamics
This case illustrates the application of Mich. Comp. Laws §438.31c(11) in protecting commercial lending agreements from standard usury caps. The ruling reinforces the legal certainty required for high-value debt financing on non-residential real estate within the state.
This ruling clarifies the regulatory landscape for lenders and borrowers involved in commercial real estate financing in Michigan. Investors should note that loans exceeding $100,000 with specific non-residential security carry different regulatory protections than standard residential loans.
The takeaway
Commercial loan agreements are subject to different interest rate exemptions depending on the type of collateral provided. Borrowers and lenders should carefully review Michigan state statutes to understand how specific asset security affects loan compliance.
Further reading
For more information on legal standards for credit, visit the Financial Planning section.
Source note: This article includes information reported by Michigan Lawyers Weekly.
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