New York Agricultural Law Questions & Answers

Q: One of the parties joining our LLC appears to have secured an FSA loan with LLC crops and acreage. Is this legal?

2 Answers | Asked in Business Law, Agricultural Law, Gov & Administrative Law and Government Contracts for New York on
Answered on Jan 23, 2017
Barry Eran Janay's answer
You are right to be worried since based on the facts you've given it does appear that a violation of the terms of the loan took place at best and it may be fraud at worst. All of this can affect the LLC if a lawsuit is filed or if property owned by the LLC becomes the subject of the litigation. Some of the actions that the LLC can take would be to suspend the member who took out the loan using the LLC's assets as collateral and demand that he produce all records concerning the loans so that...

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