Skip to content
 

Disclosing Business Loan Details

Answered by: 
Andy Zavoina

Question: 
We have a business that has a loan that is secured by another business's Certificate of Deposit. The loan became past due to the point that the CD was redeemed and applied to the loan. Now the borrower has declared bankruptcy and the CD owner would like information on the loan (which they did not sign, only assigned their property). Can we give them this information?
Answer: 

Officially or unofficially???

If I suspected that releasing any info would come back at you (I don't know the relationship of the businesses) I would refer the CD owner to the borrower, the borrower's attorney and the Trustee. Any actions to setoff will have to be court approved anyway.

First published on BankersOnline.com 11/18/2002

First published on 11/18/2002

Filed under: 
Compliance
Filed under compliance as: 
Bankruptcy
Certificate of Deposit

Report a problem with this page

Search Topics