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#247485 - 09/22/04 02:17 AM Line of credit - Change in Terms
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
We have an evergreen, unsecured line of credit that we are discontinuing and converting to a maturing, variable rate line with index tied to prime.

Do I need signatures for borrowers or can I simply send a change in terms notice per Reg Z 226.9?

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Lending Compliance
#247486 - 09/22/04 02:28 AM Re: Line of credit - Change in Terms
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,629
Galveston, TX
It depends if you contracted for a change in terms in your original contract. If not, I would seek legal counsel.
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#247487 - 09/22/04 03:34 PM Re: Line of credit - Change in Terms
someone else Offline
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someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
What is an evergreen?

Other than the tree...
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Somewhere, something incredible is waiting to be known. - Carl Sagan

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#247488 - 09/22/04 06:10 PM Re: Line of credit - Change in Terms
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
Sorry, evergreen means the LOC has no maturity date i.e. credit card plan.

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#247489 - 09/22/04 10:42 PM Re: Line of credit - Change in Terms
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,629
Galveston, TX
Some States might have some other specific notice requirements - you need to check State laws also.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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