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| Thanks Dave. Sounds awful. It's water under the bridge at this point and maybe you didn't think it was worth it, but I think a lawyer would have been able to prevent them calling that crop note in season and for sure worked out a better solution on the pickup. I know before mandatory mediation things were different, but my father / grandfather were able to stop a bank from calling a livestock note early with the help of a lawyer. When the cattle eventually were sold, there was a deficiency and that had to be dealt with by selling other assets. The bank lawyer advised the bank that the court was very likely to side that the bank had to wait until loan maturity and let the cattle finish, so the bank caved. At least that's what I've been told. Bankers themselves can try to verbally demand a lot of things from borrowers that may get struck down real fast when the actual law comes into play. I'm only guessing but I think back then a lot of people probably complied with demands that likely were not enforceable if pressed to court.
All that being said, use of proceeds, selling out of trust, and loan agreement terms need to be adhered to or the bank's claim is much easier. | |
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Stamp and Boerson
