lender liability

lender liability definition - business

lender liability

The legal obligation of a financial institution to make available funds that have been promised to a loan applicant and, once funds have been made available, to abide by the terms of a loan agreement. Failure to abide by the promise of funds or the terms of a loan opens the creditor to legal action by the borrower.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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