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To: Haim R. Branisteanu who wrote (107843)	2/4/2010 3:06:42 AM
From: mishedlo	1 Recommendation Read Replies (2) \| Respond to of 116555

Hi Mish there must be clear evidence of bank fraud for a bank to close down the credit line. In any loan agreement there are covenants regarding equity in the business profitability free cash flow and assets to loan ratios as long as those items are within the limits the bank can do nothing. See USC Title 18 Part 1 Chapter 31,41,47,63 on issues related to banking and insurance. I had an attorney email me about this issue familiar with the law. He agreed with what the bank did and went so far as to suggest that should that person file bankruptcy, his recommendation was to file a lawsuit against the person for fraudulent conveyance. The bank was already aware of it and is waiting to do that if the person files. As I said, I had another bank email me that they did the same. I am quite sure these guys know what they are doing and your interpretation is either point blank wrong, or does not apply to California law and perhaps many other states as well. Bear in mind the loan agreement specified certain percentages the business had to maintain. The business failed to meet those agreements. I strongly suggest these guys know what they are talking about. Mish