LENDER LIABILITY
\lˈɛndə lˌa͡ɪəbˈɪlɪti], \lˈɛndə lˌaɪəbˈɪlɪti], \l_ˈɛ_n_d_ə l_ˌaɪ_ə_b_ˈɪ_l_ɪ_t_i]\
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US legal direction holding lenders, especially banks and mortgage companies, liable for a borrower's inability to repay due to the lender's actions. Liability is for (1) bad faith loans, (2) refusing to advance promised new loans or credit extensions, (3) seizing borrower's business as controlling interest, or (4) foreclosing without proper procedure and notification, seizing borrower's assets.
By Henry Campbell Black
Word of the day
tinctura quininae ammoniata
- A preparation made by dissolving quinin sulphate in alcohol [Br. Ph.].