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#1045 - 03/23/01 04:35 PM Certificates of Good Standing
CFreasier Offline
Junior Member
Joined: Mar 2001
Posts: 25
Corpus Christi, TX, USA
Is it a requirement to obtain a Certificate of Good Standing or is it at the loan officer's discretion? If it is a requirement, does a new one need to be obtained annually?

Thanks.


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General Discussion
#1046 - 03/24/01 05:11 AM Re: Certificates of Good Standing
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
The certificate "proves" that the corporation has met the state requirements for the year, not that they will be able to repay the loan.

Even if the corporation is suspended for not meeting the state requirements, you probably have assets and/or guaratees that you can rely on.

A good practive, yes, but not a legal requirement that I know of.

------------------
Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#1047 - 03/24/01 05:47 AM Re: Certificates of Good Standing
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
This a policy issue. Usually credit policy/procedures indicate whether this is required and if so, who can waive.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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