Posted By: Banker Chick
Interest Reserve Account - 08/24/10 04:49 PM
The Bank would like to set up an interest reserve account for a business construction loan. This account would be used to pay interes on the loan via automatic deduction. The required interest reserve account will be a savings account.
Can the Bank 'hold' the funds in a savings account for the term of the construction loan?
Is there any proplem with not allowing the business to be authorized signers on the account?
Thank you in advance.
Can the Bank 'hold' the funds in a savings account for the term of the construction loan?
Is there any proplem with not allowing the business to be authorized signers on the account?
Thank you in advance.