South Florida Pulmonary and Critical Care, LLC (SFPCC) is a medical practice comprised of several member physicians.
Question:
South Florida Pulmonary and Critical Care, LLC (SFPCC) is a medical practice comprised of several member physicians. In 2011, Marquis Bank (the Bank) extended a \($150,000.00\) line of credit to Dr. Palma and other physician members of SFPCC to provide working capital for the business entity. Over the next several years, the Bank extended and eventually increased the line of credit to \($1\) million, yielding freshly executed promissory notes denoting SFPCC as a borrower and the then-physician members, including Drs. Hernandez, Palma, and Sevilla, as co-borrowers. By 2016, SFCC had enjoyed significant expansion, resulting in greater operational expenses and other financial needs, and sought to renew the most recent iteration of the note. The Bank approved the credit application; however, it mandated the execution of a separate \($350,000.00\) term loan, payable in predetermined installments. Shortly after the paperwork was completed, Hernandez, Palma, and Sevilla left the practice to pursue other ventures. Upon their exit, SFPCC demanded payment of a proportional share due under the notes, calculated according to each physician’s respective membership and departure date. The physicians refused, maintaining they were merely accommodation parties and bore no individual liability to SFPCC for the debt. What additional information would you need to determine whether the physicians were “accommodation parties”?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs