Legal Question in Business Law in North Carolina

We are not behind in any payment but due to the financial environment, our bank wants us to pay more down on an existing rental property loan to put them in a better position ! They have a commercial line of credit on our home with a 0 balance. Can they advance any monies on the line without us signing & agreeing ?


Asked on 11/15/10, 11:04 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a franchise attorney I can say the answer is usually no. Typically, you need to request an advance on the line of credit, but read your line of credit agreement carefully. You can also call the bank and ask them. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

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Answered on 11/20/10, 11:27 am


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