Using Consumer Forms For Commercial Loans

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Question:

If a consumer form is used for a commercial loan, is it a legal loan or do I need to call my customer and have him sign a new note without the fed box?

Answer:

Consumer docs are fine for a commercial transaction, but you may be losing additional fees, security and other provisions commonly found in commercial docs. You may also be assuming responsibilities by contract that the law does not impose on you.

First published on BankersOnline.com 12/16/2002