Legal Question in Credit and Debt Law in Florida

Community Bank vs Willa's - Return of Proceeds
A NV Bank makes a commercial loan to a NV Corporation for construction of a business, including the purchase of equipment. The Borrower, as Buyer, enters into a written Contract with a FL corporation for the purchase of the equipment. The Contract provides that jurisdiction and venue are in the State of Florida. At the direction of the Borrower/Buyer, the Bank transmits the loan proceeds to the Seller via Fed wire transfer. There is no existing relationship between the Seller and the Bank. The Seller immediately undertakes performance of the Contract, including purchasing the equipment in the name of and titled to the Borrower/Buyer. The Borrower/Buyer defaults on the loan payments. Can the Bank demand return of the funds from the Seller?

Asked on 6/01/06, 1:24 pm

David Slater David P. Slater, Esq.

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Re: Community Bank vs Willa's - Return of Proceeds

While they may ask, I wouldn't give it.

Answered on 6/01/06, 4:28 pm

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