LOC - can the bank stop the funds

Discussion in 'Share Investing Strategies, Theories & Education' started by crdm, 11th Oct, 2008.

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  1. crdm

    crdm Member

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    Palm Beach QLD
    Hi,

    Currently using a LOC to fund my IP's - with the tightening squeeze on the market, can the banks stop the funds being used to repay debts/ if you have available equity?

    cheers
     
    crdm, 11th Oct, 2008
    #1
  2. BillV

    BillV Well-Known Member

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    crdm

    they can, but it would take a VERY brave bank to do such a thing because the damage to their reputation will be far greater than any benefit.

    Are you with a big lender?

    Cheers
     
    Last edited by a moderator: 11th Oct, 2008
    BillV, 11th Oct, 2008
    #2
  3. crdm

    crdm Member

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    Hi Bill,

    This current LOC is with Macquarie? Obviously there area few people who are using equity to fund debt at the moment!

    cheers
    crdm
     
    crdm, 11th Oct, 2008
    #3
  4. BillV

    BillV Well-Known Member

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    crdm

    I don't believe that you have anything to worry about.

    I am optimistic and believe that after the G7 meeting coming up
    the credit markets should start to recover.

    Cheers
     
    BillV, 11th Oct, 2008
    #4
  5. crdm

    crdm Member

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    Posts:
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    Location:
    Palm Beach QLD
    Hi Bill,

    Yes, I agree, I quite optimistic in the outcome as well. Thanks again for your feedback.

    cheers
    crdm
     
    crdm, 11th Oct, 2008
    #5