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| I can tell you for sure that has happened.
All they have to do is say you lack collateral. The banker determines what your collateral is worth.
Well when land goes down to 25% of what it cost 2 years ago, and machinery goes down to about nothing, You can make your payments and still be upside down.
Lots of things can happen that are not supposed to.
I had bought some equipment with 25% of my own money and borrowed the rest from PCA. 4 year note.
Made my payment and was required to put up a truck I had free and clear to put in the following crop. They called my crop loan in the first part of June. I had not even paid all my crop inputs.
They told me I had to sell the truck for $5,000, which was less that it was worth by far. They did not want me to take more than that. I know it was worth more than that as I traded the box of for another and got that much difference. I sold the truck for the $5,000 and gave them both checks.
How does that make sense unless something shady is going on?
The banker actually told me they did not like me trucking or baling hay as they could not get their name on the check.
Every single check had came in to them up until that point.
After that the checks went to my suppliers, that were supposed to have been paid from my line of credit.
Everything was paid off by Christmas. Even at $29% interest.
I even paid off the stock that they would not redeem. Then I had to threaten a lawsuit o rele3ase their liens.
The whole deal was they were in a cash bind and they could get money from me as I was making things work.
It probably didn't help that the loan officer's they had were farmer that went broke under more favorable circumstances. Many only lasted a month as they were being told to do things with bad information presented to them. | |
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Stamp and Boerson
