So if I were to say that my house is 2000 sq ft.....and according to the left, I mean the city of New York, my house is only 1300 sq ft, they can close all of my businesses and take everything I have?
No, it doesn't work that way.
The bank decides what your property is worth when it comes to loans. The city decides what your property is worth with respect to taxes. What you claim your property is worth doesn't matter.
When you fill out a loan origination document you give them what you know is as close to being accurate as you can. But the bank decides what your property is worth and gives you a yes or no on whether or not they will approve the loan and what the conditions are. They offer terms on interest rates how long the loan with be and how much payments will be. They never take your word. If they did they'd be out of business in little or no time.
Apparently they were happy with the agreed upon terms and the loans were paid off on-time.