Blooming Terrace No. 1, LLC, Petitioner v. Kh Blake Street, LLC, and Kresher Holdings, LLC, Respondents.

Summary

The court held that the effective interest rate on a nonconsumer loan must be calculated by annualizing all charges imposed during the relevant extension of credit over that extension's duration, rather than averaging charges over the entire life of the loan. Because the forbearance fee annualized to 29.4% and accrued default interest added 21%, the effective rate was 50.4%, exceeding Colorado's 45% usury ceiling. The court reversed the dismissal and remanded for reinstatement of the complaint and further proceedings consistent with its calculation method.