Is the "Individual" a Consumer or a Business?

Answered by:

Question:

How can we determine whether or not an individual is applying for a loan as a consumer or for business purposes? There is some ambiguity when it comes to investments. Are there any resources to help me with this?

Answer:

Answer by Dan Persfull:Reg. Z's 226.3 and its Commentary gives you some tests to apply to the transaction as a guidance to whether the transaction is primarily business or consumer.

Answer:

Answer by Richard Insley:A detailed purpose statement by the applicant is a good start. (Don't forget that Section 103.33(a) of the BSA Regs require you to obtain a purpose statement for non-R/E loans exceeding $10,000.)

First published on BankersOnline.com 5/05/08