Skip to content
GeoDataVision
Thread Options
#1433398 - 08/24/10 04:49 PM Interest Reserve Account
Banker Chick Offline
Junior Member
Joined: Jul 2006
Posts: 37
TN
The Bank would like to set up an interest reserve account for a business construction loan. This account would be used to pay interes on the loan via automatic deduction. The required interest reserve account will be a savings account.

Can the Bank 'hold' the funds in a savings account for the term of the construction loan?

Is there any proplem with not allowing the business to be authorized signers on the account?

Thank you in advance.
_________________________
Opinions expressed are my own and do not necessarily reflect those of my employer.

Return to Top
Deposits and Payments
#1433769 - 08/25/10 04:20 AM Re: Interest Reserve Account Banker Chick
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,973
Galveston, TX
The establishment of an interest reserve account on a commercial transaction is a contractual issue. Normally, interest reserve accounts are managed solely by the bank according to the contractual arrangement.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  John Burnett