We have a loan to a sole-proprietorship which is secured. We have the spouse sign a security agreement but it does not state "sole-proprietorship," because we have the spouse sign individually. We are in Oklahoma. Is the security agreement legal in a community property state. What is the best way to show continuity between the Note and Security Agreement when lending to a sole proprietorship with the individual and their spouse?
When making a commercial loan to a sole proprietorship entity, is a personal guarantee required or hold any value if the note was already signed by the individual already?
I recently joined a bank - just in time to jump into the tax reporting errors! In 2007 we offered a wide variety of promotional campaigns. In some campaigns, we offered bonus dollars (more than $20) for a new account opening. We also offered a bonus gift for closing on a loan with us (value over $25). We gave away gift cards (again, more than $20 value) for a new account relationship and finally, had a gift book where customers could choose a gift based on the number of times they used their debit card. The people that received these bonuses included businesses, consumers, lending and deposit relationships.It is my understanding that if the value of the premium - cash or physical item - is greater than $20, a 1099-INT must be created for the value of the item. However, there are others who believe that only cash items or gift cards fall under the 1099-INT rule and physical items fall under 1099-MISC reporting. If under 1099-Misc, it is understood that the value must be greater than $600 and does not apply to businesses.What is the proper way to report the following - assuming value over $20, and what special rules would apply if the recipient was a business?<ol><li>Bonus dollars added to deposits<li>Gift cards given for referring a friend <Li>Gift cards given for opening an account<Li>Gift item given for closing a loan<Li>Gift item given for debit card usage.</ol>
A husband and wife own a commercial property and run a business at the location. The business is operated as a DBA/sole proprietorship. The wife works outside of the business and earns the majority of household income. Can a rewrite of the commercial mortgage be considered to the owners with the proceeds being for personal use? Very little of the proceeds would go back into the business.
What is our right to offset a delinquent personal loan with a DBA deposit account bearing the same social security number?
Borrower is a corporation with one shareholder. All business assets are pledged as collateral. Lender wants the spouse to also sign on loan docs, with the concern being that she may gain ownership of at least 1/2 assets should they divorce. Would asking her to sign be a violation of Reg B? If so, does the lender have a bona fide concern regarding assets or does the fact that the borrower is a coporation make this a non-issue? Flip side: What about if the borrower was a partnership or sole proprietorship and the spouse has no role in the affairs or function of the business? (e.g., farmer Bob who takes a loan secured by crops.) Lender wants to add wife to loan as a condition for the same reasons listed above. How should I advise my lender?
When making a loan to a sole proprietorship can you list the 'DBA' under the individuals name and SSN?