The requirement that principals provide a guarantee means the guarantee of one or more natural persons who have a majority ownership interest in the business organization receiving the loan. For a corporation, this will be one or more shareholders having a majority ownership of the corporation.
Submitted by sevans on Mon, 12/01/2014 - 3:50pm
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- Majority interest partners in a partnerships must provide personal guarantees
- Personal guarantees required for loans to business entities
- So long as a credit union got an appraisal (according to regulations) at the time the loan was originated, it need not get another appraisal to support its interest in the loan
- Real estate appraisal guidelines are in Part 722 of NCUA Rules and Regulations
- When a credit union sells a real estate loan, it is not required to get an appraisal