Most Popular Lending Content
Signature Required For Guarantor's Credit Report?
05/19/2003
When making a business loan, we often require an individual to guarantee the obligation. Under the Fair Credit Reporting Act there seems to be no question this is a "permissible" purpose to allow us to obtain a credit report on the guarantor. Does the FCRA require we obtain the guarantor's signature acknowledging that a credit report will be obtained? If so, can you direct me to the specific language.
Can a commercial loan be made to a borrower if the proceeds are to be used for investing in an annuity?
05/19/2003
Can a commercial loan be made to a borrower if the proceeds are to be used for investing in an annuity? Can the bank obtain an assignment of that annuity? If yes, would this be considered a "purpose loan secured by margin stock" under Reg U?
Calculation of NFIP Insurance Benefits
05/19/2003
Suppose we made a $2,000,000 loan to finance construction of a commercial property located in a special flood hazard area. The maximum insurance provided by NFIP of $500,000 was obtained. In the next year, flood damage was incurred amounting to $1,400,000. How much insurance benefit will be provided? Will it only be 1/4 of the loss ($350,000)since only 1/4 of the insurable amount was in effect?
Extending Credit To Employee Secured By ESOP
05/19/2003
Is there any problem with extending credit to a Bank employee that is secured by the vested portion of their ESOP (w/401k provisions) account?
Does right of rescission and HMDA apply for unsecured home improvements?
05/19/2003
If we make a loan for a new air conditioner or screen room that is basically is unsecured but we do file a UCC, does the right of rescission apply and is it a HMDA reportable loan?