The Law Dictionary

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LENDER LIABILITY Definition & Legal Meaning

Definition & Citations:

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.


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