May a qualified lender consider a borrower’s treatment of collateral when reviewing a restructuring application?
Yes. When considering an application for restructuring, a qualified lender may consider whether the borrower has the management skills necessary to protect collateral from diversion or other risks. This would generally occur in situations in which the qualified lender had to act to protect collateral believed to be at risk or in which there was a conversion of collateral proceeds.
Related Questions
- Does a borrower have to submit an application for restructuring before meeting with the qualified lender to discuss either the distressed loan notice or the inputs into a restructure plan?
- Does a qualified lender have to provide borrower rights when some or all of the collateral is "at risk"?
- When and how does a qualified lender notify a borrower of the right to seek loan restructuring?
