Lender requesting future tax returns
I'm in the process of negotiating through a loan and the lender is requesting us to provide all FUTURE tax returns for the entity purchasing the building, all personal returns for investors associated with the building holding over 10% equity and any other tax returns for businesses unrelated to the entity borrowing the money within 30 days of filing tax returns. The bank states it's for the purpose of proving the quality of the loan to regulating officials for the duration of the loan (aka the next 20 years), but how does an unrelated entity prove the quality of a loan?
I feel it is a huge hassle to have to send all tax returns for the life of the loan from all members of the LLC or fear breach of contract. After a loan has been dispersed and the property is purchased, isn't the quality of the loan solely based at that point on whether it's paid on time or not?
I understand when applying for a commercial loan the bank wants personal tax returns, business returns, etc., but I have never seen a bank ask for those items for the lifetime of the loan. Has anyone else had experience with banks asking for information on an annual basis? If so, how were you able to negotiate around those items?