If your bank is considering taking on this line of lending, it needs to discuss all of your questions and more with informed legal counsel. Both state and federal laws need to be considered.
Lending to Start-up Business for Processing Hemp
What should be a financial institution's main considerations/conditions for lending to a start-up business for processing hemp? How does an institution perfect a security interest in the raw material/and or crude? If the institution has to take possession for some reason, what would be the recourse? Can the financial institution sell the inventory to another hemp processor?
First published on 07/28/2019