Team Presentations - Law 19 - Spring 2015

Assignment #15 - Equal Credit Opportunity - Consumer Law
Equal Credit Opportunity

The Riggs National Bank of Washington, D.C., loaned more than $11 million to Samuel Linch and Albert Randolgy. To obtain the loan, Linch and Randolph provided personal financial statements. Linch's statement included substantial assets that he owned jointly with his wife, Marcia. As a condition of the loan, Riggs required that Marcia, as well as Samuel and Albert, sign a personal guaranty for repayment. When the borrowers defaulted, Riggs filed a suit in federal district court to recover its funds, based on the personal guarantees. The court ruled against the borrowers, who appealed.

Answer the following questions:

1. Did the bank violate the Equal Credit Opportunity Act. yes, or no, why or why not?

2. Find the place in your book, page number, and what is says to answer this case problem.

3. Then look at the case at Riggs National Bank of Washington D.C. v. Linch, 36 F.3d 370 (4th Cir. 1994) - and state the court's ruling, in whose favor, the Bank or the Borrowers, and why, and the legal rule the court applied.

Now post your work in the box below.

Good luck. Prof J.