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LOC - can the bank stop the funds

Discussion in 'General Investing Discussion' started by crdm, 11th Oct, 2008.

  1. crdm

    crdm Member

    Joined:
    30th Oct, 2007
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    Location:
    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
     
  2. Billv

    Billv Getting there

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    Location:
    Sydney, NSW
    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
  3. crdm

    crdm Member

    Joined:
    30th Oct, 2007
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    Location:
    Palm Beach QLD
    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
     
  4. Billv

    Billv Getting there

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    Location:
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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
     
  5. crdm

    crdm Member

    Joined:
    30th Oct, 2007
    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