Is LLC (limited Liabilty) a form of organizatoon, the best intersest for a Bank?
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Using each of the 4 criteria in lecture listed below:
1) Anti-trust law, 2) Approach to an Holder in Due course problem 3) How to obtain Holder in Due COurse status 4) Forms of Buisness organization
describe why you feel that the form of organization (which is limited liabilty, LLC,(Bank of America) is (or is not) in the company's (bank) best interest.
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Is LLC a form of organization, the best interest for a Bank.
ANTI TRUST LAW
In case of the anti trust law, the bank would like to see that the business that took the loan maintained the form so that it repaid the loan. Usually, the anti-trust law is applied to corporations that enjoy a monopolistic power over the market and have reached gigantic proportions. In case of proprietorship concerns, partnerships or cooperatives usually such law is rarely applied and so from the perspective of the anti-trust law the corporation is likely to attract the provisions of the law and a corporation may be broken up by the government. This can lead to serious consequences for the bank.
However, in case of anti-trust law along with the form of organization, the bank should be vigilant about the market position of the borrowing company. For instance, if a partnership organization controls 60% of the market and is in a position to increase its share of the market, it is much more likely to attract the penal provisions of the anti-trust law than an organization which is a corporation and controls only 6% of the market share.
APPROACH TO A HOLDER IN DUE COURSE PROBLEM
The organization which has made the check or a promissory note and that check or promissory note is bad and the bank has received it in good faith, for value which the bank has paid and the bank has no suspicion that it might be no good. In this case the bank is bound to get the payment from the maker of the check or the ...
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