Commercial Loan Documentation Training Course

Why select this training course?

Commercial loan documentation is among the critical parts of any lending process, as it is a major part of the legal transaction. The documentation, in most cases, holds legally and can be enforceable to clarify loans for every party involved in the loans and improve the arrangements. It is important for professionals to understand loan documentation if they are to be involved in any corporate borrowing.

What is commercial loan documentation?

Commercial loan documentation refers to the written agreement between a lender and a borrower outlining the terms and conditions of a commercial loan. The loan documentation serves as a contract between the two parties, specifying the loan amount, the interest rate, repayment terms, collateral, covenants, and any other conditions that must be met for the loan to be approved and disbursed.

What are the key elements of commercial loan documentation?

Typically, commercial loan documentation includes several key elements, such as aloan agreement, security agreement, promissory note, personal guarantees, and loan covenants. The loan agreement outlines the loan terms, including the amount, interest rate, repayment terms, and collateral requirements. The security agreement outlines the assets used as collateral to secure the loan, while the promissory note outlines the borrower’s promise to repay the loan. Personal guarantees may be required to provide additional security for the loan. In contrast, loan covenants set conditions that the borrower must meet to maintain the loan in good standing.

The Commercial Loan Documentation Training Course by Rcademy will be a key part of the commercial aspects of loans and how they are documented, giving history to loan documentation based on various precedents that have changed over the last period of the financial revolution and the market. It will cover business plans, collateral documentation, commercial loan agreements, principles of loan documentation, and commercial loan guarantors. By taking this course, credit professionals and other financial professionals will grasp the key concepts and principles of the loan documentation process. They will learn about different types of documents that are part of the commercial loan documentation, the review process, and the specific timing for the documentation required. The course is well designed to meet all the requirements for training in all financial and commercial loan documentation.

Who should attend?

The Commercial Loan Documentation Training Course by Rcademy is ideal for the following professionals:

• Credit trainees
• Commercial branch officers
• Auditors
• Credit and financial analysts
• Senior officers in charge of company policy about law, policy, and procedures
• Commercial and consumer lending officers
• Credit managers and officers
• Personnel directors
• Any other interested professionals

What are the course objectives?

The Commercial Loan Documentation Training Course by Rcademy has the objectives to enable participants to:

• Identify the main reasons for developing correct loan documentation
• Be exposed to important loan processing and management methods
• Recognize the documents required to complete the necessary steps in the documentation process
• Understand various types of loan security that will be used in the local jurisdictions in your local area and how lenders can construct protective shields around the lender using documents
• Know the documentation required for closing a commercial loan
• Understand the key permitted baskets structures
• Identify loan documentation checklists for commercial loans
• Discover the rules of perfecting the security interest of the uniform commercial code
• Have a good working knowledge of the main purpose of each document in a commercial loan
• Understand various financial covenants and how they are documented
• Evaluate the purpose and recognize the value of a lien search, title insurance, and title search
• Learn about the key voting thresholds in syndicated and club deals
• Understand how to design the correct loan documents
• Have real-world skills to be entrusted to maintain a safe and sound loan portfolio
• Be able to provide a broad view of the loan document provisions to lenders and borrowers
• Understand how to analyze commercial aspects of senior facility agreement (SFA)
• Understand how to correctly maintain commercial loan documentation
• Identify the required signers of commercial loans and the form of their signatures

How will this course be presented?

This course will be presented by the industry’s best professionals using the following methods:

• Presentations
• Lecture notes
• Videos
• Exercises
• Examples and case studies

What are the topics covered in this course?

Module 1: Documents And Actions Required To Analyse Interest Security

• Perfection for unusual types of collateral
• Certificate of titles
• Perfection by possession
• Perfection under the uniform commercial codes
• Perfection by attachment
• Perfection by control

Module 2: Collateral Support Documentation

• Guaranty Agreement
• Security agreement
• Landlord’s waiver
• Hypothecation agreement
• Insurance policies
• Deed to secure debt
• Subordination agreement

Module 3: Types Of Organisation And Identity Support Documentation

• Partnerships and partnership agreements
• Sole proprietorship
  – Agreements
  – Driver’s license
  – Ownership
  – Birth certificates
• Corporations
  – Certificate of good standing
  – By-laws
  – Articles of incorporation
• Limited liability company
  – Operating agreements
  – Articles of organisation=
• Opinion letters
• Corporate resolutions
• Partnership resolutions

Module 3: Valuation, Classification, And Identification Of Collateral

• Types of collateral
• Proper collateral type usage
• Collateral appraisals
• Evaluation of collateral
• Collateral documents valuation
• Sales contracts

Module 4: debt evidence documentation

• Promissory notes
• Proposal letters
• Business loan agreement
• Commitment letters
• Purpose of the loan
• Installation costs
• Period of loan
• Loan usage disclosure documents

Module 5: Loan Details

• Perfect collateral
• Partnership entity
• Identifying the borrowers
• Documenting loan evidence correctly
• Corporation ownership control
• Bankruptcy trends
• Attaching the right collaterals
• Documents required to close various commercial loans
• Documenting collaterals

Module 6: Advanced Concepts

• Pari passu
• FATCA
• LIBOR discontinuation and replacement
• Negative pledge
• Cross default
• The role of the agent in a syndicated loan
• The role of the representation and repeating representations
• Financial ratios
• Reservation of rights of letters
• Withholding tax and the gross-up clause
• Continuing events of default
• Methods of loan transfer
• Title financing
• Asset finance
• Legal issues and opinion
• Case study

Module 7: Business Plan

• Collateral documentation
  – Principles and interest payments
  – Adequacy of collateral
  – Appraisals
  – Borrowers commitment
  – Value of the business
• Using promissory notes
  – Debt collection agency
  – Essential elements
• Commercial debt schedules
• Documenting the purpose of a loan

Module 8: Credit Agreement

• How to “read” the SFA and where to start
• Understanding the borrower’s aim
• Negotiating tactics used
• Financial scenario interplay
• Considerations
• Net-short provision
• Net-short lender
• Credit department documentation