Here is the quick and dirty; I am late cashing out an investor due to the fact that my account is currently frozen due to some red flags on how I was moving money in and out (newer account, a few failed closings, so monies came in and out of escrow, so the activity looks weird)
The bank is doing some kind of anti money laundering investigation, which I am not worried about at all. What I am worried about is an agitated investor that I have who I am late in paying due to this situation. I am only (currently) 13 days late in paying him. Am I exposed to any legal liability currently? I have been in communication with him the entire time, and am by no means blowing him off. That doesn't seem to satisfy him though.
Should I be worried? I should be able to make payment soon (within about 4 days or so), but I am taking his ire seriously. Please advise.
Are you talking about paying off a loan? If so, the investor's recourse is to eventually foreclose. In the mean time, he can tack on late fees or whatever is allowed in the promissory note. IDK the timeline in NC, but its almost certainly more than 17 days after a missed payment before you can even start the foreclosure process.
Jon, it was a loan directly to my company, not tied to a specific asset.
@Jon Holdman it was a loan directly to my company, not tied to a specific asset.
Read the promissory note or other loan documentation, assuming there is something. It should outline penalties for missed payments.
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