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 no federal laws in place. However, lender liability and 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 3/20/06