Posts Tagged ‘loan’

Lenders: Do the Process Right or Pay the Price

Thursday, June 11th, 2015

In a recent case, a township trustee secured a loan from a bank to purchase a fire truck. However, the township trustee failed to obtain a prior appropriation of funds by the township for the purchase of the fire truck or comply with statutory procedures allowing for an opportunity for remonstrance by taxpayers. A part-time employee of the township then executed a promissory note for $335,295, and signed the note as the township trustee. The bank deposited the money into the township’s checking account and the township paid $287,149 for the fire truck and purchased some equipment. Excess loan proceeds in the amount of $47,529.48 were used for other township purposes. (more…)

Court Rules that Guarantor Not Released From Liability Because of Integration Clause and Lenders Have No Duty to Advise Prospective Borrowers to Obtain Counsel

Tuesday, August 30th, 2011

In a recent decision, the Indiana Court of Appeals held that an integration clause contained in a guaranty of one loan did not release the guarantor from his liability of a separate loan.  The Court also held that absent special circumstances, a financial institution is not required to advise a client to seek legal counsel in connection with a commercial transaction. (more…)

Sharing The Wealth: Participated Loans

Wednesday, September 30th, 2009

A participation is a contractual arrangement in which the lead lender makes a loan to his borrower and then sells a share of that loan to another lender known as the participant.  Participants and lenders customarily document the terms and conditions of their deal in a participation agreement which will control the rights and duties between them.  (more…)