financing - Posted by loney

Posted by Cal, Balto on July 10, 2002 at 22:50:30:

That is a tuff one. Is the business still operating and profitable or is it defunct. Is there any advantage of the church aquiring the business. Did the owner of the business sign any documentation showing that he was liable to the church for the debt? I need to know the details of the agreement between the owner of the business and the church before being able to tell you whether the church has any recourse or whether they just bought somebody a business. As far as refi’s go I don’t think anybody would touch that until the legalities are straightened out! I’d be happy to give more of an opinion if you can give more details about the structure of the deal. In the mean time tell the church to contact the best lawyer they can afford!

Cal, Balto

financing - Posted by loney

Posted by loney on July 10, 2002 at 14:28:26:

Is there a way to refinance a loan that a church has taken out to help one of its members start a business? The problem is, the member got the loan (50 K) in the name of the church but the business is in the member’s name. The loan is now in default and the church will need to pay it in full to keep its credibility. How can the church gain ownreship of the business once the loan is paid? (No formal contract was drawn up to protect the church from this action)