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#398848 - 08/09/05 04:10 PM loan renewal
Anonymous
Unregistered

This is probably a stupid question, but does the loan number that is being renewed need to be on a new promissory note? We are renewing a loan and the old loan number was left off the note, but it is on the worksheet.

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Lending Compliance
#398849 - 08/09/05 04:19 PM Re: loan renewal
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
There are no regulatory guidelines pertaining to this that I am aware of. It sounds like a "best practice" type of issue. My opinion: I would like to see the old note number referenced just for an internal control.
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David Dickinson
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#398850 - 08/09/05 04:27 PM Re: loan renewal
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:

There are no regulatory guidelines pertaining to this that I am aware of. It sounds like a "best practice" type of issue. My opinion: I would like to see the old note number referenced just for an internal control.




I second this opinion. The question you need to ask is if the new note does not reference the old note, then does the new note satisfy and replace the old note, therefore making it a refinancing vs a renewal?
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The opinions expressed are mine and they are not to be taken as legal advice.

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#398851 - 08/09/05 06:34 PM Re: loan renewal
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
It is alot easier to track renewals when you put the old note number on the new note. Have you ever tried tracking dollar amounts and payoff dates on histories to determine what is new monies and what is renewal monies? I like to reference old numbers on the new note, even if only a portion of a note rolled into it.

This not only helps you answer questions, it also helps auditors, examiners and loan review when reviewing a file and trying to identify how loan documents with dollar amounts relate to a promissory note.

But remember, should you change to a new borrower or entity that would not be considered "renewal".
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