We have a borrow that owns commercial property and is looking to take on 2 additional investors. We want to make each of the 3 borrowers individually liable for one third of the note. Then when calculating how much we can lend to the original borrower, do we only use the 1/3 (the amount individually owned)?

State bank in Texas.

I'm in an OCC bank and we aren't allowed to do that. Total liability has to be counted against each. Not sure on the theory of that stance, but that's been our direction.

Go here:

7 TAC 12.9

Thanks, that was just what I needed.