Legal Question in Business Law in Minnesota
lien
I own 6% of a company and have co-
signed on a line of credit - can the bank
hold me liable for mor than my 6%
ownership share if something were to
happen and we default on the lne?
2 Answers from Attorneys
Re: lien
The answer depends on who is a signatory on the loan. If the loan was personally guaranteed, any person signing that personal guarantee may be held liable for the entire amount of the loan regardless of their interest in the company.
If th Company itself is the only entity obligated on the loan, then only the company is liable to the lender.
Re: lien
As a business attorney who has represented a number of banks over the last 25 years,I cannot imagine a limitation on your liability to 6%. I would be happy to review your document at no charge.
Call or email.
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