Question: If a spouse owns more than 25% of a company, can we require them to sign the joint application form as a guarantor?
Answer: Yes. If the spouse is an owner, director, officer, or shareholder, etc., of the company, you can require that he/she guarantee the loan. Joint intent is not needed in this case, but you could still get it if you want. Keep in mind; however, you can’t require an owner, director, officer or shareholder (the spouse in this case) to assume personal liability for the loan (sign the note). If the spouse volunteers to do so, then you would need to get joint intent to show that you did not require them to sign the note.
Join us for the Compliance for Commercial Lenders Webinar on July 27, 2019. We will answer all the questions submitted during the live webinar, in writing.
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar, or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups, and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru.
Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports related!