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Banks calling in Ag loans ?
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paul the original
Posted 3/22/2023 10:54 (#10152206 - in reply to #10152200)
Subject: RE: Banks calling in Ag loans ?


southern MN
Keith Mudd - 3/22/2023 09:46

Don't know how a bank could call a loan that was current. I'd say this if not true.



There are clauses in the fine print.

They can call in a loan that is upside down, for example.

You are current on the loan. But the asset is worth less that the remaining loan value.

They can call that loan in, demand you pay it off entirely. Because it no longer meets the terms of the loan.

In normal times the bank would be foolish to do so.

In desperate times anything is on the table, and those are the best loans for a bank to call in to prop up the bank.

Be aware of your surroundings, and the situations we get into.

Now, I highly doubt we are in that situation anywhere in ag country today. So I doubt any of this is going on today.

Paul


Edited by paul the original 3/22/2023 10:55
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