Claims Examples

Lender Liability

≡ A bank makes a construction loan to a customer. The proceeds of the loan are issued to a contractor, but the contractor does not pay a subcontractor. The subcontractor sues the bank.

≡ A bank is sued by another bank that alleges that the bank is wrongfully asserting that it has a superior lien on property on which the plaintiff bank is foreclosing.

≡ A community bank represents to a foreign bank that it is willing to participate in a local loan transaction. The local institution then sells off its participation and is subsequently sued by the loan originator when the borrower defaults.

≡ A class action alleging TILA violations is filed after the bank erroneously sends borrowers the incorrect Notice of Right-to-Cancel forms.