True story. It was about 15 years ago, we had a customer who was retired Army and owned a gun shop. He also had a pilot's license. Yes, you see the flags because you know where this is going.
We had a lien on his plane as well as all the inventory and equipment. Long story short, he was flying for a local dealer and they were busted one day upon returning from Mexico. The plane was seized because it was used in the crime.
Federal Marshall's reviewed our loan files with our attorney. Had it been evident that his retirement and gun shop income would not have supported his financial condition as we saw it, we would have lost our lien on the plane, we were told. Because it did all jibe, they sold the plane, paid our lien first and kept the equity income.
While that sounds good, it took over two years to do. We had a nonperforming asset we had to account for. We didn't want the charge off and kept explaining this to regulators. We also saw the plane dry rot on the tarmac during most of this period. That means it was losing value with poor upkeep. We didn't know when it would end as we had no control. This was not a good situation.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell