Which is a prohibited basis under ECOA?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection …

When does a wife sign a personal guarantee?

Everbank, two wives signed personal guarantees when their husbands’ limited liability company took out a commercial loan. When they challenged the legality of those guarantees, one wife’s guarantee was voided, but the other’s was not.

Can a wife be a defendant in a personal guarantee lawsuit?

In the Richardson case, the business defaulted on the loan, and the lender filed a lawsuit for foreclosure and recovery of money due under the promissory note and personal guarantees. Because of the personal guarantees, both of the wives were named as defendants in the lawsuit.

When do you need a personal guarantee on a business loan?

Banks commonly require personal guarantees on business loans when the business does not have sufficient income, assets and credit history. When you sign a personal guarantee, you agree to pay the loan yourself if the business cannot pay it.

Can a husband ask his wife to sign a personal guarantee?

The Florida Court of Appeal outlined two reasons a lender could legitimately ask a wife to sign a personal guarantee. First, if the loan is secured by assets held jointly by the husband and wife, the lender might be unable to access those assets if the husband defaulted – unless the wife signed a guarantee.

Can a spouse of a company guarantee a loan?

Personal Guaranties from Spouses of Borrowers – Ward and Smith, P.A. Lenders to a closely-held company will sometimes request (or require) that the principal’s spouse also personally guarantee the loan. The US Supreme Court may be clarifying the rules governing these personal guaranties.

Can a director of a limited company sign a personal guarantee?

As a director of a limited company, it is standard practice for lenders, and some suppliers, to request that you sign a Personal Guarantee (PG). This acts as security for a company’s borrowing.

Is there any protection from a personal guarantee?

There’s no protection from a company. This means that all of your personal assets are on the line. Personal guarantees are attractive to creditors when the guarantor has assets to cover the exposure of the creditor. Guarantees are a form of security of performance of a contract.