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#1210396 - 06/30/09 09:00 PM Reg B - Intent to apply for joint credit
mbernard Offline
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Joined: Jul 2008
Posts: 109
Can anyone point me where a Reg talks about Intent to Apply for Joint Credit for Businesses.

I am trying to decide in what aspect the "Intent to apply for joint credit" applies to businesses. If the Husband and wife are getting a loan under a business name, where they will just be authorized signers, is this "intent" for joint credit required to me awknowledged by them because the business is getting the loan? Or just when the couple is applying for a loan jointly to be used for a business?

Or if you ahve any further guidance relating to the "Intent" and a business, I would really appreciate it.

Thanks in advance!

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#1210415 - 06/30/09 09:20 PM Re: Reg B - Intent to apply for joint credit mbernard
Cale_N_Oats Offline
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Cale_N_Oats
Joined: Aug 2008
Posts: 742
Southern Illinois
This is what my internal auditor gave to me when i asked the same question....

3. Evidence of joint application. A person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. (See Appendix B). The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.

This is the site: http://www.fdic.gov/regulations/laws/rules/6500-3000.html
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#1210419 - 06/30/09 09:25 PM Re: Reg B - Intent to apply for joint credit Cale_N_Oats
Cale_N_Oats Offline
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Cale_N_Oats
Joined: Aug 2008
Posts: 742
Southern Illinois
IMO, i would say that intent is required for all loans for the business.
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#1210427 - 06/30/09 09:34 PM Re: Reg B - Intent to apply for joint credit Cale_N_Oats
swiggles Offline
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swiggles
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Posts: 7,333
Regulation B applies to all types of lending. For example, if ABC Inc and Abbott-Costello LLP apply together for loan, they must signify joint intent. See the definition of "applicant" in Reg B, which will then prompt you to see the definition of "person." [202.2(c) and (x)]
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#1210434 - 06/30/09 09:54 PM Re: Reg B - Intent to apply for joint credit swiggles
mbernard Offline
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Joined: Jul 2008
Posts: 109
Thank you very much! Exactly what I needed. =D

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#1210838 - 07/01/09 06:05 PM Re: Reg B - Intent to apply for joint credit mbernard
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
You might also find this FDIC FIL helpful:
http://www.fdic.gov/news/news/financial/2004/FIL0604.html
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http://www.bankerscompliance.com

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