We have a new loan secured by a UCC filing for a Borrower (LLC) formed in Oregon, with a principal office in Washington DC. The entity does not do business in California. We are a Commercial Bank located in California. the LLC is not registered in California, however, they also do not do business in California.
The Guarantor is a corporation and is a former customer. The Guarantor is a California corporation.
Does it pose a risk to the Bank if our Borrower is not registered to do business in California?
This would be a legal question and best answered by an Attorney in the State of California. Putting on my BSA/AML compliance hat – I would have to ask why they would do a loan in CA since they do not operate in your state. That would be the “big” red flag IMO.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.