You can and that was the unofficial position expressed by some of the regulators for a number of years. Whether you want to or not is another question. When I was on the line, I would not. Lending was always a two-way street in my mind. I give you our depositor's money - you agree to pay me back and abide by the rules of our loan agreement. You want me to increase, renewal or extend your loan when you are in default of your loan agreement with me (if this is not some sort of a bona-fide workout situation)? Go talk to someone else.
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