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n. Illinois | Every note you have ever signed has one of the default clauses, language that basically states that if the lender deems itself undersecured it can deem the loan is in default. and can call the note.
So in the 1980's when land values dropped by more than 50% some Farm Credit institutions attempted to use that language especially if the borrower had other assets it could pledge to shore up their collateral position. It usually did not turn out well for anyone but the lawyers representing both sides.
Again, this language is in every note you have ever sign at a commercial bank or Farm Credit institution.
Edited by Reality speaks 1/27/2021 21:52
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Loans called in the 80’s vs what could happen now?
