Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#2206051 - 02/13/19 09:21 PM Balloon Note Refinancing
Ginlyn, CRCM Offline
Gold Star
Ginlyn, CRCM
Joined: Nov 2003
Posts: 300
Oklahoma
I already know the answer to this question; however, when I see, "check your state laws/requirements," in the answers given, I try to heed the advisory and follow up. I am employed at a bank in Oklahoma. A five year closed-end, fixed rate balloon note is maturing and the customer has requested an extension (we are a small creditor in a rural area). The only change will be an increase in the interest rate causing this transaction to be a refinancing instead of a modification. I don't know if or how Oklahoma state laws/requirements factor into this in any way, but all assistance would be greatly appreciated.

Return to Top
#2206083 - 02/14/19 01:52 PM Re: Balloon Note Refinancing Ginlyn, CRCM
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
The only change will be an increase in the interest rate causing this transaction to be a refinancing instead of a modification.

I am not sure why you think this would be a refinancing, if you are extending the maturity and adjusting the fixed interest rate by modifying the existing note through a modification prior to maturity of the original obligation?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top