Is this a privacy violation or not?

[rakumom]

What is the name of your state? Mississippi

A corporation has a loan which is secured by property owned by the corporation as well as some property owned by a 3rd party. An agreement was signed by the 3rd party at the time the loan was made giving permission for this property to be assigned as collateral. The 3rd party did not co-sign or personally guarantee the loan other than to allow this particular property to be put up as additional collateral. Does the bank officer have total freedom to discuss any and all aspects of this loan at any time with the 3rd party (owner of the collateral) without any formal agreement by the actual parties of the loan, the corporate officers who are personal guarantors of the loan? Just checking, cause it really gets on my nerves when he calls the 3rd party first about something before calling me, president of the corporation! I realize I just may be touchy but thought it wouldn't hurt to see if I have a right to call him on it.

 

[Veronica1228]

What is the name of your state? Mississippi

A corporation has a loan which is secured by property owned by the corporation as well as some property owned by a 3rd party. An agreement was signed by the 3rd party at the time the loan was made giving permission for this property to be assigned as collateral. The 3rd party did not co-sign or personally guarantee the loan other than to allow this particular property to be put up as additional collateral. Does the bank officer have total freedom to discuss any and all aspects of this loan at any time with the 3rd party (owner of the collateral) without any formal agreement by the actual parties of the loan, the corporate officers who are personal guarantors of the loan? Just checking, cause it really gets on my nerves when he calls the 3rd party first about something before calling me, president of the corporation! I realize I just may be touchy but thought it wouldn't hurt to see if I have a right to call him on it.

The 3rd party has a vested interest in the loan, and absolutely is entitled to any information on the loan only. Including payment problems, note renewals, borrowing base certificates, interest rates, etc. If the corporation defaults on the loan, the 3rd party has a lot to lose, so why shouldn't he be kept in the loop? Remember, he was doing you a favor when he put up the additional collateral.

If it bothers you so much that the banker calls the 3rd party first, explain to him that you would like to be first contact for any problems or questions on the note. However, it probably would look fishy if you try to convince him to not contact the 3rd party at all. He may wonder what you are trying to hide. Bankers tend to remember these kinds of things when notes come up for renewal.