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AGMBris
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Wow

So a loan to equity ratio can create a default to the bank yes? A capital decrease substantial enough was enough to give the bank the right to take action? Even though all loan payments had been made and there was no arrears?

And is the bank then looking to refinance to get more equity from the client? Or is it an underhand way for the bank to refinance at better interest rates?

Either way its a terrible situation and to my understanding, no matter how they structured the commercial property finance, the same thing would have happened from the bank yes?

I guess your point is, they would not have the lost the business income at the same time.

It is definitely very very good advice re: taking the time to consider structure to protect oneself, at the beginning…and a case of 2 to 3K.