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#950499 - 04/28/08 02:28 PM LTOB
8Banger Offline
New Poster
Joined: Apr 2008
Posts: 1
We have had another lender suggest to us that if a bank's Loans To One Borrower limit should fall because their capital fell due to (let's say) losses, that any loans made earlier would be grandfathered in to compliance.

Anyone else hear of this?

Thanks!

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Lending Compliance
#950587 - 04/28/08 03:24 PM Re: LTOB 8Banger
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
So long as you don't continue to extend additional credit, yes.
_________________________
My opinion only. Not legal advice.

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#950666 - 04/28/08 04:26 PM Re: LTOB RR Joker
SavannahOne Offline
Diamond Poster
Joined: Sep 2005
Posts: 1,163
Georgia
For clarity, renewing a maturing loan would be considered extending additional credit.

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