Legal Question in Investment Law in New York

business partneship

my fiancee wants to get into a business partnership with his boss and co-sign for a loan and similar things, his boss claims that nothing will come back on my fiancee but I don't know how true that is. I am afraid that if something happens to his boss, my fiancee will be financially responsible. My question is, is it possible for him to be a silent partner and co-signer for something and if something goes wrong, for it not to come bakc on him? Also, once you co-sign for a loan and the loan goes through, can your name be taken off of the loan?

Thank you for your help!


Asked on 7/03/03, 1:08 pm

1 Answer from Attorneys
Asi Kirmayer Kirmayer PLLC

Re: business partneship

There are various ways to structure a transaction in a way that limits the liability of one of the partners. However, it would be very unusual for your fiance to co-sign a loan without being liable for the payments of interest and principal on the loan -- that's usually why a lender wants someone to co-sign a loan -- it gives the lender one more person to look to for repayment.

Once you co-sign a loan, you would typically need the lender's consent to be "taken off" the loan, but again, the lender is only going to agree to this in unusual circumstances that typically involve the restructuring of the loan in some way.

Your fiance should definitely obtain proper legal advice in this area. I have handled these kinds of transactions in the past and would be happy to discuss it with you.

Best of luck.

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WARNING: This information is not intended to constitute legal advice and should not be relied upon for any purpose in lieu of consultation with appropriate legal counsel in your own jurisdiction.

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Answered on 7/03/03, 3:41 pm


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