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SWNE | Your last sentence is where I have had a lot of thoughts about this since the OP brought it up. In my mind the person wanting to do this is going to be a successful businessman with a variety of different enterprises and assets. This man is willing to risk a certain portion of his equity on a given enterprise but he is not willing to risk everything. I think any Banker worth his salt is going to see right through a guy whose only intent is to screw the system. As an aside when most people think about questions like this the first thing they do is put it in the context of they're own lives and what they are experiencing. Farmers and feeling stress with the low prices. They may have a fear in the back of they're mind about what might happen. The more I think about it the more I wonder if a lot of the angry posts reading into things about paying the money back may have more to do with the farmers personal fears about his own finances. The same with bankers, the notes that keep them up at night and the ones on their minds aren't the good ones, it's the bad ones and their worried about getting payed back. I wonder how much different the whole tone of this conversation would be if it had been asked in the 2008-2012 timeline and people were looking at it though a different sent of glasses.
Now you stated that a man would have flawed character if he doesn't repay his debts. In general I would agree with that. But it's not his debt, its Bill Corp's debt and if he is being honest and above board about his business plan and makes it clear that he is willing to lose 600k and that's it than how is he lacking in character if he does exactly what he said he would.
In comparison what if Bob signs that personal guarantee, and like yourself and many of the posters in this thread he means it and he is going to do everything possible to pay that money back. But suppose both Bob and Bob's banker over estimates Bob's abilities, and while Bob wants to pay it back it turns out Bob is not capable/competent enough to repay the money no matter how much he wants to.
Who has the better character?
Edited by BHAAG 2/12/2016 08:10
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Personally Guaranteeing Farm Loans
