What exactly is Lender Liability? This informative article ended up being reviewed and edited by FindLaw Attorney Writers
The court attempted to define the elements of a fiduciary relationship between lender and borrower as follows: 1) the borrower must have faith, trust and confidence in the bank; 2) the borrower must be in a position of inequality, dependence, weakness or lack of knowledge; and 3) the bank must exercise dominion, control or influence over the borrower’s affairs in Waddell v. Dewey County Bank.
If your lender-borrower relationship is kept at supply’s size (the typical scenario that is debtor-creditor, the connection is certainly not fiduciary. (more…)