Policing the Borrower: Debtor Misconduct Creates New Duties for Secured Lenders
Holland, Brennan T.
MetadataShow full item record
This article is both a survey and critique of contemporary decisions in the federal court system which serve to intensify the need for secured lenders to monitor and police the actions of their borrowers. The author concludes that this judicial trend has a deleterious and unfair effect upon lenders, creating a duty to enforce government regulations and penalizing lenders for borrower misbehavior. The cumulative effect of this trend combined with movement toward increasing lender liability for over-involvement in the affairs of the borrower is, in the author’s estimation, a recipe for great confusion in lender law going forward.