Journal of Commercial Lending articles from June 1994

Journal of Commercial Lending archives from June 1994

Two Sides of Collateral: Security and Danger
June 1, 1994... In German mythology, a group of beautiful sirens inhabited a particularly treacherous part of the Rhine. Through lovely song, the sirens would lure sailors onto the rocks despite the sailors' awareness of the risks. So, too, bankers have known...

The Role of Environmental Risk Management in the Credit Process
June 1, 1994... It may not have been the lawmakers' intent, but the passage of the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) has brought new meaning to the term risk management as far as bank credit officers are...

The Risks of Home Equity Lending
June 1, 1994... Home equity products came into being after the enactment of the Tax Reform Act of 1986. The act eliminated personal interest as a tax deduction but allowed home owners to deduct the interest paid on a second mortgage or deed of trust if certain...

Portfolio Diversification: Balancing Benefits and Costs
June 1, 1994... Statistical and economic theories say that if a $20-million loan portfolio is diversified among several borrowers and types of loans, industries, and regions, the risk of a large principal loss is less than if there is just one $20-million loan...

Lending to Government Contractors
June 1, 1994... A loan officer must take into consideration a number of things when assessing the risks of lending to government contractors. For example, the government contracting industry: * Is not measured by a standard of traditional return on sales...

Eating Crow at the Antebellum Inn
June 1, 1994... Once there was a dignified residence with a history that predated the Civil War. It was located next to a small pond, and nearby, a state highway wended its way further into the Deep South. The residence had fallen into disrepair and...