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Big Lender Halts All Eminent Domain Loans

Posted on: Wednesday, 25 January 2006, 15:00 CST

A major U.S. commercial lender, said it would not lend to commercial developers planning projects on land taken from private citizens by eminent domain.

BB&T, based in Winston-Salem, N.C., said it changed its commercial lending policy after the Supreme Court last June ruled that local governments could seize personal property for commercial development, American City Business Journals said Wednesday.

The case arose from a New England municipality that seized private property for a commercial builder who promised upscale development to dramatically boost revenues for the municipality. The high court denied the appeal of the property owners.

One of the most basic rights of every citizen is to keep what they own, said BB&T Chief Executive Officer John Allison. "As an institution dedicated to helping our clients achieve economic success and financial security, we won't help any entity or company that would undermine that mission and threaten the hard-earned American dream of property ownership.

It's just plain wrong.

Source: United Press International

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