Q: Are there any specific laws in Florida regarding a bank needing access to the full trust when applying for a loan?
I have applied for a business line of credit with Truist Bank. I applied for a line of credit and put a property up as collateral. They are asking for a full copy of the trust. What can I do?
A:
Here are a few key things to know about banks asking for trust documents when applying for a loan in Florida:
- Banks typically have a right to request details of a trust when that trust owns the asset being used as collateral on a loan. However, they generally cannot require the full trust document.
- Florida law allows you to provide a Certificate of Trust to the bank instead of the full document. This certificate discloses certain key details - name of trust, trustees, powers of trustees etc. but keeps other trust details private.
- You can request the bank to specify exactly what information they need from the trust to process your line of credit application and collateral. Provide those details through a Certificate of Trust or excerpts instead of the entire trust document if possible.
- If the bank insists on more trust details, consult an attorney. The attorney can review what the bank is requesting and advise if it is truly necessary or exceeds what Florida law requires you to disclose.
- An attorney can also communicate directly with the bank on your behalf if needed to get the required loan approval while still maintaining trust privacy.
So in summary - try providing a Certificate of Trust first, negotiate with the bank on specific necessary details, get legal guidance if the bank overreaches. With this approach you can likely get the loan approved without compromising the entire trust document.
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