Late Fees After Maturity or Acceleration – A Lawyer’s Musings
Spring 2026
Publication| Real Estate Services
Most commercial borrowers don’t blink at late fee provisions in loan documents. But when a loan hits maturity with a large balloon still unpaid, or when the lender accelerates after a default, late fees become far more consequential. In those moments, one line in the promissory note can swing six or seven figures. This article offers a practical tour through the basics of late fees; the controversies over late fees after maturity or acceleration, including how courts have treated them across several jurisdictions; and pragmatic guidance to avoid borrower blowback and litigation risk.