Is there a requirement to have a maturity date on a loan?
Most of our notes are "due on demand".
During a compliance review, it was noted that some (very few) loans were found in which our LazerPro documents did not reflect a maturity date.
Does it have too?
Thank you all..!

You can have "due on demand" loans. They are rare in my experiences, but not unheard of.

Conjuring up memories of "ever-greens".

I don't have a lot of history behind me in lending, so I'm not familiar with how long demand loans have been around or if most banks are not using them any more.
Our small a&% counsel said “demand loans are VERY common and MOST banks write ALL their note this way.”
Can someone help me understand demand loans history and current use?
Thank you

If you're wanting a survey, we are a $500M bank with 20 branches and we have very few demand loans on the books.

When we use demand wording we also use an alternate maturity date ("On demand, but if no demand is made, July 31, 2006"). This comes from an attorney. His reasoning was that with a demand loan you'd basically have to have default for making demand.

Do you re-assess the customer and collateral periodically? How do you require the customer to provide updated financial information to reasses continuing with the relationship. Do all your loans have a written agreement to provide this information (i.e. financials, tax returns, borrowing base reports)?