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valb
Guest
What is the name of your state? NJ
Closely held S-corp started with 3 equal partners applies and receives credit line. During application bank requires all partners to pledge personal assets as collateral. Now, one of the partners waants to assume 'silent' status or even exit the business. Along with that, partner no longer wants to pledge his personal assets as a colateral of credit line.
Questions: Can this partner force the credit line termination? Can partner own substantial number of shares 33% and not be included in credit / loan applications filled by business?
Closely held S-corp started with 3 equal partners applies and receives credit line. During application bank requires all partners to pledge personal assets as collateral. Now, one of the partners waants to assume 'silent' status or even exit the business. Along with that, partner no longer wants to pledge his personal assets as a colateral of credit line.
Questions: Can this partner force the credit line termination? Can partner own substantial number of shares 33% and not be included in credit / loan applications filled by business?