Legal Question in Banking Law in Minnesota
SBA & Banking responsibilities
SBA loan was very lopsided. I feel the bank was interested primarily in their profit than in my success. In fact, one could suggest they failed in their fiduciary responsibility by completely deleting me of my operating funds.
In the absence of a detailed business plan, the bank allowed me to purchase a loan by demanding I agree to a high collateral requirement. I did not know that was unnecessary. It places our family ranch at risk which is now being foreclosed on by the bank. SBA is willing to work with us but the bank isn't.
The fact that my loan took over 5 months to complete is incomprehensible.
I know the bank is suppose to work with the contractor and have the contractor submit payment requests. In turn for payment, the bank receives a lien waiver. This did not happen, the contractor was turning the payment requests in to me and I was giving them to the bank. The bank then wrote a check out and gave it to me to give to the contractor. I, not being in the construction nor banking business, did not realize this was being done erroneously. Many mistakes are costing us to loose all we have. Can we take action against this bank?
1 Answer from Attorneys
Re: SBA & Banking responsibilities
I would want to undertake a comprehensive review of your documents and situation in order to advise you, but there is such a thing as "lender liability".
I would be happy to meet with you to discuss further. How is your other debt, secured and unsecured?
You may have some leverage in next 10 days due to Bankruptcy Law change and negotiating settlement with creditors in lieu of bankruptcy.
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