Understanding Lender Liability

Written by Economic Development Jobs on October 16, 2018. Posted in Intellectual property law, Partnership dissolution, Securities-related transactions

An enormous number of commercial disputes and bankruptcy filings go on each year in courtrooms, lawyer’s offices, and in front of an arbitrator. Some of the complex civil litigation issues can be difficult to understand. One issue that is not always well understood is the issue of lender liability.

What Is Lender Liability?

Lender liability is always the result of something the lender has done or failed to do. In general, lender liability comes into play when a lender has broken a federal or state law or has breached common law. It may also be the result of violating an agreement or harming or lying to a borrower in some way. Lender liability can arise both intentionally and unintentionally.

What Are the Penalties?

The penalty to be applied when a lender is liable will depend on each unique situation. Where a lender has been fraudulent or in some way wronged a borrower or