We recently looked at doing an unsecured loan for a customer and wanted to put in a loan covenant that stated that the loan would come due in full, immediately, if the debtor were to ever fire/stop using the services of his Financial Advisor. Mainly based on the fact that we know as long as this person uses the FA we will get paid on time. Both are good customers of the bank, and we have a lot of history with the FA (not affiliated with the bank at all). My question is: is this even legaly viable? Thanks

I'm just going to voice an opinion, if the bank requires this specific FA and something goes wrong, I would be concerned about "lender liability".

I think you could probably require that he maintains a FA acceptable to the bank, but I would be concerned about specifying the FA.

I would seek legal advice and also make sure nothing in your state law would come into play in such an arrangement.

I have nothing to base this on, it is strictly me thinking with my fingers.

I agree with Dan. If the FA ever stole money from the customer, who do you think would give it back? Too much liability and endorsement.

Thank you. I thought/ hoped this would be the answer. I just needed some back up to prove my case to the lender.