A private lender made to a loan to a CA corporation
. The lender “called” the loan before the due date and is now suing the borrower for the return of the borrowed money. The borrower was current all payments at the time the loan was called. The interest rate was usurious by statute. The lender was not licensed (as required in CA) to make the commercial business
loan. There are no personal guarantees attached to the loan.
My wife and I are the shareholders
of the CA corp. We did not co-sign or borrow any money from the lender. The Corp is the sole borrower.
The lender is suing the CA corp, myself, and my wife for breach of contract
and conversion. Breach of contract saying we didn’t pay back the loan when they demanded it and conversion saying we used the money for personal use and benefit…..this is speculation as they have no evidence.
They have filed a subpoena now demanding that the CA corp, myself, and my wife turn over all records associated with all business and personal bank accounts, brokerage accounts, all personal contracts….mortgage loans credit card statements etc…..huge amount of gathering.
In order to quash the subpoena I have to file a motion…..what is my best defense to turning over all very private business and personal records?
If the loan agreement was illegal due to usury and lender being unlicensed is that an adequate defense to pursue to quash the subpoena?