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#1161881 - 04/10/09 07:16 PM Deposit accounts and loans
Denovo Co Offline
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Joined: Jan 2005
Posts: 375
NM
It is ok to require a deposit account to a loan applicant? What if the loan is granted and the borrower never opens a deposit account and the Bank won't renew the loan because they didn't open an account? Can you base the denial of the renewal on the fact that an account was not opened?

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#1161997 - 04/10/09 08:54 PM Re: Deposit accounts and loans Denovo Co
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,035
Toano, VA
If the loan agreement contained a provision that the borrower would open a deposit account and the borrower failed to do so, then the loan is in default. I can't think of a better reason to refuse a renewal. In fact, it's sufficient reason to accelerate the existing loan.
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