Course description
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.
Upcoming start dates
Suitability - Who should attend?
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 lendingofficers
- Credit managers and officers
- Personnel directors
- Any other interested professionals
Outcome / Qualification etc.
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
- Understandvarious types of loan securitythat 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
Training Course Content
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 collectionagency – 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
Request info
Rcademy
Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...