We have a customer who has applied for a commercial loan in the name of ABC company. It has a member named Henry Doe and a secretary named Paul Jones who have signed the note for the company. The two have also signed personal guarantees because the bank policy requires them to do so. In the file there is not a Reg B notice for joint intent. Should there be? If I look at 202.2(e), it looks like they should sign one?
While it is permissible to obtain evidence of intent to be a joint applicant from a guarantor, it is not necessary. As noted in the original question, the term applicant includes guarantors. But Comment 7(d)(1)2 states, “The term “joint applicant” refers to someone who applies contemporaneously with the applicant for shared or joint credit. It does not refer to someone whose signature is required by the creditor as a condition for granting the credit requested.” Generally a guarantor does not apply contemporaneously with the applicant, and therefore would not be a joint applicant.