Thread Options
#655639 - 12/21/06 04:38 PM Series LLC
Love those Regs Offline
Gold Star
Joined: Apr 2002
Posts: 292
Southern State
Has anyone encountered a loan request from a Series LLC? Here is what my loan staff says a Series LLC is:

By filing in Delaware, companies can now create something like subdirectories in an LLC--a Series--each series, different name, can have different members, and can't be held liable for debts in the other series connected to the "Main LLC". It takes specific set up and filing. This type of borrowing entity can cause banks problems if banks don't lock down with specific language what they will have access to by default, by rights of offset, etc. These are fairly new developments, but will be taking off like lightning. I am trying to see what other banks may be doing.
_________________________
Opinions are mine and subject to change frequently

Return to Top
Lending Compliance
#656342 - 12/22/06 04:11 PM Re: Series LLC Love those Regs
Tom at HOME Offline
Diamond Poster
Joined: Oct 2005
Posts: 1,139
This is a good article regarding Series LLCs for Fractional Ownership . Remember, you can always bypass the limit liability by agreement. Just because the law limits liability to certain parties in an organization does not mean you cannot have them sign guarantee agreements.

Return to Top

Moderator:  Andy_Z