New Orleans, LA asked in Banking and Construction Law for Louisiana

Q: Can my bank email my contractor about my construction loan to discuss extending and not contact me?

My loan officer sent this email to my contractor. She is not on the loan and he has never reached out to me.


Please call me so we can discuss your maturing construction line of credit.


Sim *****

Commercial Lending Manager

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1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick
  • Business Law Lawyer
  • Tallahassee, FL

A: Yes, this is quite common banking practice. During any construction loan your contractor is liable to the bank for the construction loan--not the future property owner. If all goes well during construction, you will get to take over the construction loan after it is rolled over into a permanent mortgage loan; the contractor is then relieved of liability--to the bank.

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