Bank's Good Faith in the Lender-Borrower Relationship

Proceedings of Northeast Business and Economic Conference, p. 42, 1987

2 Pages Posted: 4 May 2010

See all articles by Christine Neylon O'Brien

Christine Neylon O'Brien

Boston College - Carroll School of Management

Date Written: May 4, 1987

Abstract

The author describes the newly created fiduciary relationship of a lender-borrower in this case, between a bank and its lender. Noting that this involves a secured transaction, courts recognize the special relationship between the parties and in order to encourage high standards of good faith and fair dealing, they imply into the transaction this fiduciary duty. The author cites several cases as well as authority in support of this rule, noting that there should be appropriate limits to liability as well.

Suggested Citation

O'Brien, Christine Neylon, Bank's Good Faith in the Lender-Borrower Relationship (May 4, 1987). Proceedings of Northeast Business and Economic Conference, p. 42, 1987, Available at SSRN: https://ssrn.com/abstract=1600361

Christine Neylon O'Brien (Contact Author)

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Business Law Department
Chestnut Hill, MA 02467
United States
(617) 552-0413 (Phone)
(617) 552-0414 (Fax)

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