Legal Question in Banking Law in California

Contractual term on or before

If loan docs contain the clause ''This loan must fund and record prior to 11/09/04'' Which was already and extention date. Can the lender close the file on 11/10/04 at its own descretion? Or wouldnt the lender be required to obtain my signature in order to do this? I am being told that since it was to my benifit that it is acceptable for them to do this. Also, if their servicer had sent me a letter on 11/09/04 Stating that they had confirmation from the lender that my loan was cancelled, is the explaination that this was a mistake acceptable? I had cancelled the loan but the parties closed it any ways without my knowledge.


Asked on 4/26/08, 5:31 pm

1 Answer from Attorneys
Gregg Gittler GITTLER & BRADFORD

Re: Contractual term on or before

Your description leaves unclear what your role in the transaction is, although the implication is that you are the borrower. however, a loan cannot "close" (i.e., fund) without the borrower's signing loan documents such as the note.

Generally, any condition in a contract which is solely for the benefit of one party can be waived by that party. However, before any conclusion can be made here, it would be necessary for an attorney to review the entire loan documentation and put the clause you are referring to in context.

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Answered on 4/28/08, 6:57 pm


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