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Not Your Average Lending Limit Question

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Suppose a bank has an existing loan to an entity, and the owners of the entity provide pro-rata guarantees. Later, one of the guarantors requests a loan to himself, not involving the other guarantors. How should the debts be combined and reviewed for legal lending purposes?

You will need to review your state law to see if contingent/indirect obligations are included in the calculations.

First published on 6/07/10

First published on 06/07/2010

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