Managing a Borrower's Business Through a Loan Agreement 2022 | Financial Education & Development Inc. | 9 August 2022 | Webinar

All loans have loan agreements, although some are more tangible than others. Many financial institutions posit that loan agreements are simply too complicated and often attempt to avoid using them. However, loan agreements can benefit both the lender and the borrower. While the borrower must have sufficient latitude to operate the company, they must also agree to certain constraints to limit the institution’s credit exposure. Provisions in the loan agreement must be drafted to guarantee adequate cash is conserved by the borrower to ensure continued financial viability and to repay the loan.

This webinar will address formal loan agreements that are used in large or workout loans. It will define what this very formal and specific type of loan agreement is and what purposes it serves. A loan agreement is a legally binding document with the following objectives:

• Set forth the agreement between the financial institution and the borrower by clearly and concisely defining the duties and responsibilities of both parties
• Establish restrictions and qualifications on the borrower’s activities and financial condition, which are set out by affirmative and negative covenants
• Prepare an alternative plan of action that both parties agree to abide by should various contingencies make the original plan inoperable
• Serve as a communication tool and monitoring device by requiring the borrower to submit certain documents at specified times and notify • the lender about certain plans (e.g., periodic financial statements and financial projections

WHO SHOULD ATTEND?
This beneficial webinar is designed for senior credit officers, senior loan officers, credit administration officers, loan review personnel, compliance auditors, commercial loan officers, consumer loan officers, branch managers, and credit analysts.

2022 Speaker

PRESENTER:

Jeffery W. Johnson, MBA
President, Bankers Insight Group