Legal Question in Business Law in California

Revote? Do you mean revoke?

If so, I'd have to say the answer is probably yes, with an explanation.

Many, probably most, business loans and real-estate loans contain borrower covenants, in which the borrower promises to do, or not to do, certain things during the life of the loan. Typically, the borrower promises one or more of the folowing: (1) not to sell the collateral; (2) to keep the collateral insured; (3) to provide the lender with periodic financial statements; (4) to maintain certain financial ratios; (5) to avoid further encumbering the collateral with liens for taxes, judgments, etc. (6) and so on.

An uncured breach of these covenants is usually declared to be a default under the loan agreement. The lender may then have any number of remedies, including declaring the loan immediately due and payable (a so-called "acceleration clause").

If a loan is accelerated due to an uncured breach of a borrower's covenant, or similar circumstances, this will probably look to the borrower like a "revocation" of the loan, and in a sense it is, but it is NOT because the lender has changed its mind; it's because the borrower has breached a provision of the loan agreement. Of course, at this point the lender probably also has changed its mind, but that's not the cause or justification for calling the loan due.

I hope this answers your question; if I misunderstood the situation, please feel free to re-ask with more details.

Can they? Well, did they?

They could claim a default for non-payment or claim it is voidable for fraud in the application or some other basis. They could always sue to collect. Either work it out among yourselves, or hire an attorney to help you negotiate a deal or defend the suit. If serious about doing so, feel free to contact me.