Increasing The Loan Amount For A Commercial Customer - New Note?

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Question:

If a commercial loan customer had a letter of credit for $1 million as Note 1 and additional funds were approved, would you be required to draft an entirely new Note 2, or simply due an amendment to Note 1?

Answer:

Counsel could best answer this question based on your contracts. But with an increase in the loan amount, I'd generally recommend a new note.

First published on BankersOnline.com 11/04/02