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#21909 - 06/25/02 08:28 PM Lines of Credit
BeachGirl Offline
100 Club
Joined: Sep 2001
Posts: 206
Myrtle Beach, SC
We recently had a situation where a customer paid off an existing balance on a line of credit at one branch, and then went to another branch the next day and drew the line down again. The check was returned, NSF, of course. Can we place a hold or "freeze" a line of credit until checks clear on large payments? What are your suggestions for eliminating this type of risk in the future?
Thanks for all of your help!

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Lending Compliance
#21910 - 06/25/02 09:32 PM Re: Lines of Credit
Andy_Z Offline
10K Club
Joined: Oct 2000
Posts: 27,752
On the Net
You could hold the LoC until the funds are verified and clear. I'd back-date the entry for interest purposes so they get credit as of when they paid you.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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