Multiple parties to a loan may increase the security of the loan. However, the multiple parties also make the loan transaction more challenging to manage, because it is not unusual for there to be a single principal, but that single principal may be using multiple affiliated business entitles (i.e. corporations, partnerships, limited liability companies, trusts, etc.) all of which may be involved with the loan. In addition, if the principal is married consideration must be given to the rights of the spouse of the principal, especially if you are in California and have community property laws. In addition, there may be unaffiliated third parties involved in the transaction. This presentation will inform you as to how to successfully manage multiple parties to a loan transaction.
