Legal Question in Business Law in Georgia

help! Promissory GA

In the event that a borrower under a promissory note has distributed to its equity stakeholders � without any consideration to the maker � its only marketable asset, can the borrower request that the borrower provide evidence to lender that it possesses the resources to fulfill its obligation under the note? If the borrower refuses to provide such evidence, what is the lender�s recourse? If the evidence shows that the borrower no longer possesses the resources needed to fulfill its obligations to borrower as a result of disgorging its only valuable, marketable asset to its equity stakeholder, what is the lender�s recourse?


Asked on 3/31/06, 10:00 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: help! Promissory GA

Translating into plain English, are you asking what a lender can do if the borrower is unable to pay? The lender can take whatever steps it deems necessary, including filing a lawsuit. It may also file a lawsuit to recover any fraudulent conveyances -- such as when property is transferred to owners/insiders/relatives to avoid the payment of debts.

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Answered on 3/31/06, 10:13 am
Charles W. Field Charles W. Field, Attorney at Law

Re: help! Promissory GA

I am confused. You state, in the body of your post, "can the borrower request that the borrower", etc. If you would like to discuss further, please free to give me a call.

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Answered on 3/31/06, 5:17 pm


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