Re: Bank Business Loan

If you are in breach of the loan agreement, the bank may elect to enforce its rights. The real question is whether the bank wants to work with you, for if they demand immediate payment and your company neither has the wherewithal nor assets to satisfy the outstanding indebtedness, the bank may never get paid, for your company could declare bankruptcy or simply go into dissolution.

Facing this prospect, banks often will work with debtors to see whether revisions to the loan agreements are appropriate.

-- Kenneth J. Ashman; www.AshmanLawOffices.com; KAshman@AshmanLawOffices.com; 312-596-1700

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Re: Bank Business Loan

My opinion on this is that when you informed the

banker that the full amount of the past due interest could not be paid in full, there should have been an addendum attached stating 1) the date(s) when it could be repaid 2) acceptance of

this date when it could be paid. Please understand that this is only an opinion expressed with the facts as stated by you. Other alternatives could be appropriate.