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Roger, Attorney
Category: Business Law
Satisfied Customers: 31662
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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We have a business line of credit with US Bank for $100K and

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We have a business line of credit with US Bank for $100K and have it loaded up. And we have another business line of credit for $50K, but about a year ago they closed that account and require auto-pull payments of $1K/mo principal & interest from our business checking. The balance on that acct is about $35K. It will be paid off in about three years. Both loans are guaranteed by me personally. If they decided to get unpleasant, can they not only call in the loans but pull as much as they want from our business checking to cover them? tx
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney. Thanks for your question.

Whether or not they can call the loan at any time depends on what the terms of the note say. If it allows for payment to be made on demand, then that's possible.

As for pulling money out of your business checking account, this is possible IF your bank account is with the same institution. However, if it is not, your lender would have to first sue before it could attach your company's assets, money, accounts, etc.

Thus, if your checking account is with the same bank, you may want to consider moving it - - or leaving very little money in it.
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