FratFiles

• Save Paper

Lender Liability and the Duty of Good Faith

I. Introduction

From time to time, lenders and their attorneys announce that lender liability is no longer an issue with which the lending community needs to be concerned. What usually prompts this proclamation of the death of lender liability is a recent case in which a court has summarily rejected a borrower's claim that the lender violated the duty of good faith and fair dealing. Many courts have rejected borrowers' lawsuits which are based on allegations of the violation of the lender's duty of good faith. Nevertheless, lender liability should continue to be an area of concern to lenders.
Although courts often dismiss cases based on a borrower's claims of lender bad faith, in other cases courts find that lenders have indeed engaged in conduct that constitutes bad faith. Most courts carefully examine the unique facts of each case, consider the testimony of experts, and listen to the ever-inventive arguments of counsel. A loan......

View the rest of this paper...

Approximate Word Count: 7351
Approximate Pages: 30 (250 words per double-spaced page)

Similar Essays

1. Lender Liability And The Duty Of Good Faith
   

   Lender Liability and the Duty of Good Faith Lender Liability and the Duty of Good Faith I. Introduction From time to time, lenders and their attorneys announce that lender

2. Real Estate Investing
   

   adjacent buildings. In practice ensuring that you have sufficient insurance cover makes good business sense (see insurance tips page 56). The risks of under-insurance are therefore

3. Business Law
   

   575. (iii) CONTRACTS UBERRIMAE FIDEI Contracts uberrimae fidei (contracts of the utmost good faith) impose a duty of disclosure of all material facts because one party is in a

4. Investment Opportunities For Banks
   

   Rajadhyaksha, the first Treasurer. These were the people with deep and abiding ideals, faith, vision, optimism and entrepreneurial skills. These dedicated men in charge of the

5. Working Capital
   

   leave insufficient funds to cover a subsequent withdrawal or debit. This could occur in good faith of both parties if the electronic withdrawal in question is made legally