Federal Regulations for Commercial Lending

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Question:

Are there Federal regulations which require commercial lenders to treat borrowers in a commercially reasonable manner and which would allow borrowers to take legal action against a lender who acts in bad faith to the detriment of the borrower?

Answer:

There are not Federal laws in place, however lender liability civil lawsuits are common when a banker acts in bad faith that impacts the on-going viability of a going business concern.

First published on BankersOnline.com 2/13/06