Obtaining a Bank Loan; Step-by-Step

With COVID-19 stay-at-home executive orders causing issues with employment and payment of assessments in some communities and with hurricane season quickly approaching, many associations may want to have a line of credit in place. This ensures they have the funds necessary to make emergency repairs if their area is hit so that repairs can begin immediately while they wait for insurance proceeds. One of the biggest concerns that we’ve had in assisting clients with loans is that boards tend not to discuss obtaining a loan with their attorney prior to executing a commitment letter and paying a non-refundable loan commitment fee. This can be a serious (and expensive) misstep.