The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

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.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.