Property Ownership

A Minnesota property is owned by an LLC. The LLC wants to obtain a mortgage. The lender will require which document to verify the LLC's authority to borrow?

AThe personal credit reports of all LLC members
BThe LLC's operating agreement and member authorization resolution✓ Correct
CA personal guarantee from all members automatically
DOnly the articles of organization filed with the Secretary of State

Explanation

Lenders require documentation verifying an LLC's authority to enter into a mortgage transaction. This includes the operating agreement (showing who has authority to act on behalf of the LLC) and a member resolution authorizing the specific transaction.

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