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Extension Agreement for Ag/Commercial Loan

Question: 
On an ag/commercial loan, if there are two borrowers, do both need to sign an extension agreement or can just one of them sign and extend a loan?
Answer: 

by John Burnett:

I have seen commercial loan agreements in which one borrower could extend the term without the others' signed agreement, but you'd need carefully worded loan provisions to be able to do it. State law might also affect your ability to do it.

You should consult with bank counsel.

Answer: 

by Richard Insley:

Any time a question includes the words "agreement" or "contract", you should be talking to legal counsel or operating under procedures previously blessed by counsel.

Answer: 

by David Dickinson:

Think about Joint Intent: If there are 2 applicants, then you'll need some type of acknowledgement that both want to extend the loan. An extension is a new request for credit. Therefore Joint Intent is triggered.

First published on 12/22/2019

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