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Line of credit limits
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paul the original
Posted 4/26/2017 14:03 (#5983488 - in reply to #5983438)
Subject: RE: Line of credit limits


southern MN
zmracing - 4/26/2017 12:27

If a bank is writing an operating note for one year I don't think it would ever get called unless there where unusual circumstances like fraud or an unknown liability. I realize that banks can call a loan whenever they want to but a small local bank would never do that to their customers for no reason and stay in business. I would not worry at all about an operating loan being called in the middle of the year. I am sure that most customers would not be able to just pay off an operating not during the season or they would not have needed that loan.



1980s.

Lot of smaller solvent but cash poor farmers got wrecked by this, lot of bto were too big to fail and carried on down the rat hole..... Banks took the solvent fellas out and grabbed their good assets to keep their books good, and carried the bto's even deeper to hope to recoup from them someday in the future.

Paul
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