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Can land that has been used as collateral for a loan be leased to gas company to drill on it

Posted on: 12th Jun, 2011 04:56 pm
Land was used as collateral in a loan. Now we are being ask to lease the land to a gas company to drill. Are we allowed to do this. We have not missed a payment on the loan.
Yes - unless there's a provision in your Note that prohibits it.
Posted on: 12th Jun, 2011 08:53 pm
Hi tchand!

Welcome to forums!

You should contact your lender and take his permission regarding the same. If the lender agrees to your request, then you can lease the property to a gas company.

Feel free to ask if you've further queries.

Sussane
Posted on: 12th Jun, 2011 09:48 pm
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