Protecting Written Loan Terms in an Evolving Environment


The last three years have seen a tremendous increase in defaulted loans and the litigation that typically ensues in the loan enforcement process. In many cases, borrowers and guarantors allege that their lender informally agreed to modify written loan terms and use that alleged modification as a defense to the lender’s enforcement of the loan documents.

Washington lenders have enjoyed protection against these types of claims under Washington’s Credit Agreement Statute of Frauds, which provides that “agreements to lend, forbear or modify a commercial loan are unenforceable unless the agreement is in writing and signed by the creditor.” RCW 19.36.110. But, at a time when the rapid-fire exchange of e-mail has supplanted oral discourse to a substantial degree, questions have arisen concerning the effect of informal e-mail discussions and/or agreements between a borrower and lender.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lane Powell PC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.