Skip to content
BOL Conferences
Thread Options
#2193810 - 09/26/18 01:42 PM Business Enterprise Affidavit
knm1872 Offline
New Poster
Joined: Feb 2018
Posts: 20
I have been asked by a Commercial Lender on why the Business Enterprise Affidavit is required? and why it is required to be notarized. This is a stock form that comes out of our loan origination system. My assumption is based on parameters selected during the application data entering, it becomes a required closing document.

The jist of the document states:

The affidavit has language that states the borrowers certify the proceeds for the extension of credit are to be utilized in the conduct of a business enterprise engaged in the business of "type in business enterprise". The undersigned exercise control over the managerial decisions of the business enterprise.
The borrowers sign and then it is notarized.

In this case, we have 2 people as borrowers h/w, who own a 5 unit investment property outright, taking a 1st lien loan as cash out.

Why is this required? is the notarization required? TILA and Reg Z, right?
Thank you!

Return to Top
Lending Compliance
#2193820 - 09/26/18 02:24 PM Re: Business Enterprise Affidavit knm1872
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,229
Galveston, TX
Ask your forms provider and also your legal counsel what the purpose might be and when and why it is used.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z