OK, that was probably a dumb question on the continuing guarantee. Is it a valid question if the person signing the continuing guarantee is not a business principal?
Terry - I know I'm beating a dead horse here, but are you then saying a co-signer would not be considered a "joint applicant" even if the co-signer applied contemporaneously with the applicant?
In our procedures we elected to require an intent statement if the person "contemporaneously" applies in the name of the business and as a guarantor; or "contemporaneously" as applicant and co-signer.
But, if they apply in the name of the business, and subsequently, as a condition of loan approval we say the business needs a guarantor - then obviously no intent statement is required.
In the end, don't we have to rely on the customer's intent at the time of application? My question is this...how would you know NOT to ask for the 2nd person's intent signature if, at the time of application (and the guy is sitting in front of you), you don't KNOW if there will be a condition? Why not ask for the intent sig?
Likewise with co-signers, if the 2nd signature was required upon our review of the request and is a loan condition we do not consider the co-x as a joint applicant. In any case --- at this point, I couldn't bear to go back and re-train lenders!