A commercial lender is an organization primarily focused on providing loans and financing services. To qualify as a commercial lender, the entity must have a loan portfolio exceeding $100,000,000, with no more than 50 percent of that amount allocated to loans for borrowers in the commercial fishing industry. This definition is established under federal law.
The term "commercial lender" is commonly used in financial and regulatory contexts. It pertains to entities involved in lending practices, particularly in commercial real estate, business loans, and other financing transactions. Legal professionals may encounter this term in various areas, including finance law and regulatory compliance. Users can manage related documentation using legal templates from US Legal Forms, which are drafted by qualified attorneys.
Here are a couple of examples of abatement:
Example 1: A bank that specializes in providing loans to businesses, with a total loan portfolio of $150 million, qualifies as a commercial lender.
Example 2: A credit union that offers financing to various industries, including commercial fishing, but has less than 50 percent of its loans allocated to that sector, is also considered a commercial lender.
The primary statute defining a commercial lender is found in the United States Code, specifically 46 USCS § 31322. This law outlines the criteria for entities to be recognized as commercial lenders.
| Term | Definition | Key Differences |
|---|---|---|
| Commercial lender | An entity that provides loans, primarily for business purposes. | Focuses on larger loan portfolios and specific industry restrictions. |
| Consumer lender | An entity that provides loans to individuals for personal use. | Typically involves smaller loan amounts and personal financing. |
If you are considering obtaining a loan from a commercial lender, it's essential to understand the terms and conditions of the loan. Users can explore US Legal Forms for templates that can assist in preparing necessary documents. If your situation is complex, seeking advice from a legal professional may be beneficial.
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The primary function is to provide loans and financing to businesses and commercial entities.