Lender liability

Lender liability,

Definition of Lender liability:

  1. US legal doctrine under which a lending bank may be held liable for a borrowers financial losses that are directly or indirectly related to the banks actions. A bank is potentially liable for (1) loans made in bad faith, (2) refusing to advance new loans or credit extensions after promising to do so, (3) taking a controlling interest in the borrowers business, or (4) foreclosing on borrowers assets without proper procedure and notification.

Meaning of Lender liability & Lender liability Definition