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Validating the Note and Sec. Agreement

Answered by: 
Randy Carey

Question: 
We have a loan to a sole-proprietorship which is secured. We have the spouse sign a security agreement but it does not state "sole-proprietorship," because we have the spouse sign individually. We are in Oklahoma. Is the security agreement legal in a community property state. What is the best way to show continuity between the Note and Security Agreement when lending to a sole proprietorship with the individual and their spouse?
Answer: 

How do you loan to a sole proprietorship as that is not a legal entity? You loan to an individual or in the case in OK to both individuals (if they apply) where they allow husband and wife sole proprietorships - a DBA name does not belong in loan documents.

First published on 09/03/2023

Filed under: 
Lending
Filed under lending as: 
Collateral
Sole Proprietorship

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