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Lender liability - What you need to know when you enter into a borrowing agreement
on July 1, 2014
As written in the July 2014 Smart Business News, Akron/Canton
Suzana K. Koch, Partner, Brouse McDowell, LPA
Lender liability is a general term thatencompasses a number of claims that can be asserted by a borrower against its lender. Lender liability actions tend to gain prominence during economic downturns.
“As businesses and real estate developments suffer in recessionary times, lender liability actions have historically tended to increase in number,” says Suzana K. Koch, attorney at law at Brouse McDowell. “The types of legal claims filed under ‘lender liability’ can arise out of common law or statutory provisions.”
The Uniform Commercial Code (UCC)imposes an implied duty of good faith on the lender-borrower relationship and a breach of duty can be a type of lender liability claim. Good faith is defined by the UCC as “honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Click here to read the rest of the article.
Suzana K. Koch, Partner, Brouse McDowell, LPA
Lender liability is a general term thatencompasses a number of claims that can be asserted by a borrower against its lender. Lender liability actions tend to gain prominence during economic downturns.
“As businesses and real estate developments suffer in recessionary times, lender liability actions have historically tended to increase in number,” says Suzana K. Koch, attorney at law at Brouse McDowell. “The types of legal claims filed under ‘lender liability’ can arise out of common law or statutory provisions.”
The Uniform Commercial Code (UCC)imposes an implied duty of good faith on the lender-borrower relationship and a breach of duty can be a type of lender liability claim. Good faith is defined by the UCC as “honesty in fact and the observance of reasonable commercial standards of fair dealing.”
Click here to read the rest of the article.
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