|
| It's possible that was a breach of the loan agreement - like maintain a minimum equity ratio. Usually these are workout situations so long as Paid As Agreed status on all loans. I suppose if a bank were failing that may be enough though. How every situation I've talked to bankers about went here in western IA was land got paid from the sale of crop and livestock - which left purchase money livestock and crop inputs notes short. So technically the land note was paid while the line was delinquent. Robbing Peter to pay Paul doesn't cut it.
It was an awful time for both borrower and bankers. I wasn't in banking yet at that time but my own family lost farm assets so I do have some direct experience. | |
|
Stamp and Boerson
