This chart describes the Regulation B Signature Requirements for when an applicant submits an application for consumer credit or when an applicant submits an application for business credit.
When an applicant submits an application for business credit, regardless of the applicantís individual creditworthness1 a creditor may require the personal guarantee of the businessí partners, officers, directors and shareholders of closely held corporations.2,3
When an applicant submits an application for consumer credit, if the application is not for individual credit then a creditor may require the signature of the joint applicants on any credit instrument. If the application for consumer credit is for individual secured credit, a creditor may require the signature of the joint property owner on any instrument necessary under state law to make the property available to satisfy the debt in case of default.4
When the application is for individual unsecured consumer credit and the applicant is not individually creditworthy, a creditor may condition approval of the credit on the applicant furnishing another personís signature (but may not require it to be the spouse) or securing the credit. If the applicant for individual unsecured consumer credit is creditworthy, a creditor may not require any additional signatures unless either: 1) the applicant relies in part on property owned jointly, in which case the creditor may require the signature of the joint property owner only on the instrument(s) necessary under the law of the state in which the property is located to enable the creditor to reach the property; or 2) a married applicant resides in a community property state, or the property on which the applicant is relying is located in such a state, in which case the creditor may require the signature of the spouse on any instrument necessary to make the community property available to satisfy the debt in the event of default if state law denies the applicant power to manage or control sufficient community property, and the applicant lacks sufficient separate property.