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#1724423 - 07/27/12 06:15 PM Spousal Notice Commercial Loan
I dont get it Offline
Member
Joined: Dec 2006
Posts: 65
Do you need to send a tattle tale letter on a commercial loan to a individual who is married?

We require signature for a guaranty on a spouse so this seems to go along the same vein...

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#1724569 - 07/27/12 08:47 PM Re: Spousal Notice Commercial Loan I dont get it
BowlingQueen Offline
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Joined: Mar 2007
Posts: 2,920
Wisconsin
No, the married individual signs a "Marital Purpose" statement and nothing else is required.

It is a violation of Reg B to require the signature of a spouse on a guaranty. However, if the married individual signs an "Unlimited Guaranty" on a loan, then you would obtain a "Spousal Consent" from the "non-signing" spouse.
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#2136931 - 07/05/17 03:48 PM Re: Spousal Notice Commercial Loan I dont get it
CSB98 Offline
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Joined: Dec 2003
Posts: 1,337
Wisconsin
Reviving this thread for further clarification . . . .

Loan to ABC Corporation, in which the husband is the only owner. Wife has no ownership in the company. Even though we are a martial property state, we can't require the spouse to sign a personal guaranty, correct? Someone at the bank said that because we are a marital property state it is assumed she is a 50% owner of the company and her guaranty should be required.

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#2136937 - 07/05/17 03:56 PM Re: Spousal Notice Commercial Loan I dont get it
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Someone at the bank needs to go back to Regulation B school. Have them read the commentary to 1002.7(d)(6). The fact that in a divorce she may be entitled to a fair share of the assets, does not make her an owner.
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#2153677 - 11/15/17 05:14 PM Re: Spousal Notice Commercial Loan I dont get it
Carl R Offline
New Poster
Joined: Nov 2017
Posts: 7
Requiring a non-owner spouse to guaranty a business loan merely because he or she is married to the owner of the business, is the number-one commercial loan fair lending violation – or so I’ve been told by our examiners.

Under the Wisconsin Marital Property Act, a spouse acting alone may guaranty or co-sign the debt of a third party (business or consumer). However, without the consent of the non-signing/guarantying spouse, a creditor is limited to collecting no more than $1,000 per year from marital assets (again, business or consumer). The solution is to have the non-guarantying spouse sign a ‘Spousal Consent’ form. This is compliant with Reg. B and enables a creditor to collect from all available marital assets in the event of a default.

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#2159638 - 01/08/18 09:19 PM Re: Spousal Notice Commercial Loan Carl R
DoS Offline
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DoS
Joined: Apr 2012
Posts: 264
one state over
nevermind, I located my answer
Last edited by DoS; 01/08/18 09:31 PM.
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