More and more credit assets are being put on paper using automated documentation programs such as Laser Pro or EasyLender. More complex transactions are still documented by agreements prepared by lawyers. As a general rule, but not always, agreements prepared by lawyers for most of the final documents negotiated are based on the credit contract. With automated software, documentation will be taken into account in different agreements. While our discussion focuses on automated software, these comments generally apply to agreements prepared by lawyers. In the negotiation of credit documents, the borrower`s main typical objectives are the prepayment of the loan with the greatest flexibility and the lowest costs; A discussion on each of the above documents is outside the scope of this blog, however, commercial lenders must have a fundamental understanding of the intent of each document. In addition to the debt title and the loan agreement, lenders may include one of the following documents, depending on the type of financing and credit agreements: repayment of the loan for as long as possible; Under a revolving line of credit, funds can be disbursed and repaid during the term of the loan agreement. The outstanding will not exceed the lender`s commitment to the facility. The structuring and development of commercial loan contracts has been used by thousands of lawyers, borrowers and lenders to negotiate and structure commercial loans optimally. Expert analyses, guides and sample clauses and documents facilitate the development of agreements. This practical treaty examines the relevant amendments to the UCC and other legislation. It also examines the laws and regulations in force in the context in which they are created during these transactions. The structuring and development of commercial loan contracts provides lenders, to borrowers and their lawyers: – guidelines for development and strategy for specific types of collateral – A progressive guide to perfection and priority under Article 9 of the UCC – A chapter on loan participation, including alternative design solutions from each party`s perspective – A chapter on process financing – Guidelines on changes to UCC Section 9, including system changes, that guide users and significantly shorten search time, eBook and print subscribers will have access to a downloadable file containing editable forms.
E-books, CDs, downloadable content and software purchases are non-refundable, non-refundable and refundable. Click here for more information on the LexisNexis books. EBook versions of this title may contain links to Lexis-™ for other legal search options. A valid subscription to Lexis-™ is required to access this content. Successful commercial lenders do not require a law degree or specific writing skills; However, understanding the various credit documents and important arrangements allows lenders to be better negotiators and trusted advisors for their clients. In our second part of this discussion, we will look at some of the credit reserves, which are generally disputed between borrowers and lenders, and discuss how lenders should deal with such negotiations. However, a change of contract cannot be done alone without referring to the other terms of the credit contract. Bullet Versus Amortizing: Credits with a capital amount due in a single maturity plan are called spherical credits. Loans with principals payable on a schedule are called depreciable loans. Commercial lenders should have the knowledge and tools to calculate the average length of a loan based on a possible repayment and repayment period.
It may be surprising for some lenders that a fully depreciated 15-year loan may have a shorter term than a 25-year loan, depreciating 10 years (depending on the interest rate used for amortization of the facility).