The course focuses on the content and terminology of example loan documents and their intended consequences. The types of loan, the structure of a loan agreement and the types of security are explained.
Important danger areas are highlighted (from the points of view of both the lender and the borrower) in order that they may be appropriately provided for.
Participants will gain a clear understanding of the objectives of the parties and the key points for consideration. The normal negotiating compromises are illustrated in respect of specific clauses.
Participants will receive a booklet containing copies of 18 slides, 58 pages of very comprehensive notes and 52 pages of a specimen loan agreement. Each slide will cover a number of related topics and the accompanying notes will support the content of the course to be delivered by the trainer.
During the course of the day, participants will undertake one or two exercises (problems) in groups of two or three (depending on the size of the class) which will involve considering what advice should be given to a client in particular circumstances. Participants will discuss the exercise with each other and then with the trainer and will receive a written answer to the problem.
You are advising an MBO team regarding the drafting of a loan agreement. The managing director has read it over the weekend and has a number of specific questions regarding the meaning of and suggested negotiating tactics surrounding certain clauses.
Before the next drafting meeting, you explain why certain representations and warranties need to be repeated, whether they can be qualified and, if not, to what extent they can otherwise be diluted. You also discuss events of default and how their effect might be limited.