Erin is a Senior Loan Officer at First Arizona Bank and Trust. Erin was recently approached by
Question:
Erin is a Senior Loan Officer at First Arizona Bank and Trust. Erin was recently approached by the Chief Financial Officer (CFO) of Kitchell - a large privately held Arizona real estate and construction company - to discuss a loan to the company in the amount of $1,000,000.00. Erin has asked the CFO to provide a list of assets that can secure the loan and the CFO replies that the company can offer as security "all of our information technology equipment"
1. Do you think Erin should approve the loan based on this collateral? Why or why not? Before offering the loan, what should Erin do to ensure that First Arizona Bank & Trust will have priority with respect to this collateral?
(Explain why Erin shouldn't approve the loan)
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry