Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 70

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1
Chunk 70
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, bankruptcy law provides that claims based on any such
commitment will be entitled to a priority of payment over the claims of the holding company’s general unsecured creditors, including
the holders of its note obligations. Thus, any borrowing that must be done by the holding company in order to make the required capital
injection becomes more difficult and expensive and will adversely impact the holding company’s cash flows, financial condition,
and results of operations.

49

We
are party to various claims and lawsuits incidental to our business. Litigation is subject to many uncertainties such that the expenses
and ultimate exposure with respect to many of these matters cannot be ascertained.

From time to time, we,
our directors and our management are the subject of various claims and legal actions by customers, employees, stockholders and others.
Whether such claims and legal actions are legitimate or unfounded, if such claims and legal actions are not resolved in our favor, they
may result in significant financial liability and/or adversely affect our reputation and our products and services as well as impact
customer demand for those products and services. In light of the potential cost and uncertainty involved in litigation, we have in the
past and may in the future settle matters even when we believe we have a meritorious defense. Certain claims may seek injunctive relief,
which could disrupt the ordinary conduct of our business and operations or increase our cost of doing business. Our insurance or indemnities
may not cover all claims that may be asserted against us. Any judgments or settlements in any pending litigation or future claims, litigation
or investigation could have a material adverse effect on our business, reputation, financial condition and results of operations.

The
expanding body of federal, state and local regulations and/or the licensing of loan servicing, collections or other aspects of our business
and our sales of loans to third parties may increase the cost of compliance and the risks of noncompliance and subject us to litigation.

We service some of our
own loans, and loan servicing is subject to extensive regulation by federal, state and local governmental authorities as well as to various
laws and judicial and administrative decisions imposing requirements and restrictions on those activities. The volume of new or modified
laws and regulations has increased in recent years and, in addition, some individual municipalities have begun to enact laws that restrict
loan servicing activities including delaying or temporarily preventing foreclosures or forcing the modification of certain mortgages.
If regulators impose new or more restrictive requirements, we may incur additional significant costs to comply with such requirements
which may