What is the current state of the law around lender liability in the context of a loan agreement?
California, United States of America
The following excerpt is from Bank of America v. Superior Court, 220 Cal.App.3d 613, 269 Cal.Rptr. 596 (Cal. App. 1990):
As explained in Kruse v. Bank of America, supra, 202 Cal.App.3d 38, 248 Cal.Rptr. 217 (hereinafter "Kruse "), the underlying litigation concerned a series of related loan transactions challenged under evolving theories of lender liability. The facts are set out in detail in that opinion, from which the following summary is taken to provide the background of the present controversy.
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