CONTENT

  DEPARTMENTS



  DETAILS
Legend for Icons
 Article    Q&A

 Podcast  Video

 Blog  Discussions

PDF    Powerpoint
BankingQuestions.com Web

  Home >> My Bank Said ...  
About Shareholder's Percentage on a LOC

Why would fine print in a credit line contract say that you cannot be a shareholder of 25% or more?


Lenders have to meet certain requirements and restrictions when they do business with an "insider." What you are referring to sounds like a way the lender is preventing this, or at least drawing attention to the fact that if they make this loan, it requires additional reporting and tracking and may fall under certain additional qualification restrictions.

Published on BankingQuestions.com 12/29/09