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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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I need your advice please - Can a California Commercial Bank

Resolved Question:

I need your advice please -
Can a California Commercial Bank -Financial Institutuion- have their loan rep(s) BACKDATE , "Notorized Revolving Commercial Line of Credit document's", to a Maturaty Date on Loan Documents-------- long after the Maturity date passed?

History *** -For the last 13 years+-, our bank has backdated our loc documents and have us sign like we have signed on our maturaty date, which we didnt - we always went past our maturaty date-sometimes for months & during this period of time- the bank would let us continue to let us use the line of credit- both DEBITING the LOC, and Crediting the LOC-like it was normal,which we thought it was...
(it was Normal Business Protocol for us and our relationship(s) with our bank since the 90's )
Also-sometimes 20+- transactions(hundreds of thousands of credits/debits) transpired before we agreed on terms and signed.
At the time "we we eventually signed the New Loan Agreement" -the bank reps would debit our account for all Total interest payments due & or or we would write a check(thats dated with right date)--------- for the interest due plus loan fees.
(sometimes 2+- interest payments or more would be in this payment to the bank -)
A new bank took over-several months before our loan maturaty date, and this bank kept all our OUR same Bank Reps that we have delt with for years -Business continued as usual like years past, transactions transpired after maturaty date, as usual - we were using the loc like we had for years-
Even down to to the bank " Collecting payment for any interest due on the day we agreed to our new terms"

The bank ruined our business credit took it from a 89% to a 3%- Right away I emailed our bank rep that for years handled-all of our banking/loan stuff - past and current ... she stated it was a mistake and she would fix it-
Never did- but eventually brought current- but by this time it was to late our business was ruined:(
Submitted: 5 years ago.
Category: Business Law
Expert:  MShore Law replied 5 years ago.
Thank you for the post, I am happy to assist you by answering your questions. I am sorry to learn about the problems you are having with your bank and the resultant difficulty your business experienced. To answer your question, yes, with your consent the bank can back date after the maturity date, and your consent can be implied based on transactions on the account. Please let me know if you have any follow up questions.
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