1. Read the following scenario and answer the question in 5-10 sentences. You ar
ID: 419401 • Letter: 1
Question
1. Read the following scenario and answer the question in 5-10 sentences.
You are a loan officer at a bank. Two years ago your bank loaned Westwood Solar $100,000 to start a company selling solar panels to commercial and residential customers. The loan has an acceleration clause that permits the bank to immediately demand all payments plus the interest owed to date if Westwood Solar fails to pay an installment in any given month. Westwood Solar has made its loan payments for the past two years. However, you know that the company has slipped into financial distress as sales of solar panels have proved more difficult than expected. The CEO of Westwood Solar, anticipating your concern, has informed you that a new state bill proceeding through the legislature proposes to give residents substantial tax breaks for buying solar panels. The CEO has also asked for a two month extension for the next payment in order to prepare for the new tax law. Evaluate whether you should exercise the acceleration clause against Westwood Solar.
Explanation / Answer
As a human being I will give some time to that company for pay the installment, because so many people directly or indirectly involved with that company.
From economic point of view also I should give some time to re pay the installment. Became now a days unemployment is one major problem. Secondly this type of companies will help to country to improve economy by spreading business in other countries. And this company also help to decrease the share of foreign companies in own country.
We know that day by day the demand of non-conventional energies is increasing. Among all the non-conventional energies solar energy plays a major role. Now a days government also starts to give subsides to this types of companies to stop the devaluation of environmental conditions by the use of conventional energy sources.
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