Controlling a Borrower's Business Without Taking Control Through the Loan Agreement Webinar

Often times, a commercial banker may want to control their commercial borrowers’ business without taking control in an effort to protect the bank’s investment. It is never advisable for any bank to dictate the day-to-day decisions of any organization otherwise; the bank may face lender liability if the borrower follows the banks instructions but fails during the process. So, how can you control a commercial borrower without taking control of their business?

All loans have Loan Agreements. However, some Loan Agreements are more tangible than others. At one end of the spectrum are lengthy agreements that have been formally drafted by legal counsel. In the middle are pre-printed Loan Agreements, usually containing a security agreement that banks may use for nearly any type of credit extended. At the other extreme are completely informal oral agreements, which have little significance.

Many financial institutions take the position that Loan Agreements are simply too complicated and often attempt to avoid using them in loan transactions. However, Loan Agreements can benefit both the lender and the borrower. While the borrower must have sufficient latitude to operate the company, certain limitations must be placed on the business due to the financial 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 financial institution’s loan.

In this webinar, we will discuss formal Loan Agreements that are generally used for commercial borrowers. In general, Loan Agreements are used for the following reasons:

It Sets forth the agreement between the financial institution and the borrower by clearly and concisely defining the duties and responsibilities of both parties during the term of the loan

It Establishes restrictions and qualifications on the borrower’s activities and financial condition, which are set out by affirmative and negative covenants

It causes the borrower and lender to work through various contingencies thus preparing an alternative plan of action that both parties can agree to abide by should the original plan become inoperable

It serves as a communication tool and monitoring device by requiring the borrower to submit certain documents at specified times and to require notification of the lender about certain plans of the borrower (Example: periodic financial statements and financial projections).

What You’ll Learn

  • Define the Loan Agreement
  • Know When a Loan Agreement is Required to Monitor Your Borrowers’ Activities
  • Understand the Rights Afforded by the Loan Agreement
  • Know the Key Covenants to Insert to Monitor Your Borrowers’ Financial Condition
  • Understand the Relationship of the Loan Agreement with Other Loan Documents

Who Should Attend

This informative session is designed for Chief Risk Officers, Senior Credit Officers, Senior Loan Officers, Credit Administration Officers, Loan Review Personnel, Commercial Loan Officers, Consumer Loan Officers, Branch Managers, Credit Analysts, and Special Assets Officers.

Continuing Education (CE) Credits

This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.

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Jeffrey Johnson
Jeffrey Johnson

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commerci... read more.

Course TitleCreditsStart DateStart TimeDelivery TypeDelivery OptionInstructor / LocationPrice
Controlling a Borrower's Business Without Taking Control Through the Loan Agreement Webinar.25 05/31/2023 11:00amWebinarUpcoming Jeffrey Johnson$279.00 Register Now
Delivery Options

Webinars for Banks and Credit Unions

Live Webinar:

INCLUDES 30 DAYS OF ONDEMAND PLAYBACK! With this option, you will participate in the webinar as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a phone for the audio. You can type and send your questions to the instructor.  And don’t worry if you miss the webinar, you can still view it for up to thirty days after it takes place!

Live Plus Twelve Months OnDemand Playback:

With this option, you will receive the live version, then you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. The link will be available to you (and anyone else in the company) for up to twelve months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.

Live, Twelve Months OnDemand Playback PLUS Digital Download:

By adding the Digital Download to your order, you will be adding access to make the webinar part of your training library.  You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides as well.  Access to the Digital Download is for the life of your library.

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