State of California:
We own a apartment building. We own the building since the end of 2002. The bank who own the note is World Saving. They have been bought out by Wachovia about two years ago. World Saving and when Wachovia took over they ask for annual statements. Which we provided. Now they are asking last quarter’s statements, which they never did. They said it is because the annual statement shows a small lost $700 annually. I really don’t want a habit of providing them with quarterly statements more work for me. My mortgage is always paid on time with additional principle. I look up the language of the loan documents here is what it said.
"(A) Borrower, without expense to Lender, shall, upon receipt of written request from Lender, furnish to Lender (1) an annual statements of the operation of the Mortgaged Property prepared and certified by Borrower, showing in reasonable detail satisfactory to Lender, total rents received and total expenses together with an annual balance sheet and profit and loss statement, within one hundred twenty (120) days after the close of each fiscal year of Borrower, beginning with the fiscal year first ending after the date of delivery of the this Security Instrument, (2) within thirty (30) days after the end of each calendar quarter (March 31, June 30, September 30, December 31,) interim statements of the operations of the Mortgaged property show showing in reasonable detail satisfactory to Lender, total rents received and total expenses, for the previous quarter....."
The contract said they are also covered by California uniform commercial code.
So my questions is
1. Since World Saving has never asked for quarterly statements does the language of the loan documents or the prevailing law allow me to avoid providing them with the statements.
2. If they are asking for last quarter’s statements (which ends in June 30), this week when do I have to provide it to them? The loan documents is very clear upon written request. So in this case they did the request after the due dates. Note for their annual they are custom to given us written notice 120 days notice because the annual is due 120 days after the year.