Loan Agreement Due Diligence

Loan Agreement Due Diligence

Reviewing the borrower group`s compliance with sanctions legislation is a regular and important part of a lender`s due diligence prior to the contract. Funding documents include both equity and borrowing. In the case of equity financing, the documents to be audited should include share purchase contracts, underwriting contracts and other ancillary agreements (e.g. B, investor rights agreements and voting agreements). Share purchase contracts are particularly useful because they show representations of the target entity previously made, as well as all the information disclosed in the disclosure plans. Private placement memorandums or other vigilance obligations for equity investors may also contribute to the due diligence review, as these documents should provide an accurate picture of the target entity at the time of equity financing. Based on a review of this documentation, stock options plans, stock option agreements and other capital repayment documents, a legal advisor should be able to track the ownership that is reflected in the target entity`s capitalization table. With this information, a due diligence expert can assess and analyze the integrity of the borrower, predict the reliability of the transaction and ensure a solid return on investment. In addition to industry experience, which provides a specific overview of transactions, credit diligence lawyers have access to resources that make the process more efficient. For example, our due diligence lawyers have access to databases containing information about potential parties, including their UCC submissions; on the other hand, tax, judgment or other deposit fees; and complaints of non-payment of credits. We will work tirelessly on your behalf to ensure that lenders receive the benefits of the bargain with every credit transaction. Rosenberg`s real estate finance group Martin Greenberg offers lenders exceptional credit diligence.

Any lawyer in this area of our firm is bound by the success of any transaction. To this end, we will begin each transaction with a detailed and effective audit of the lending company, title and investigation, as well as all other real estate documents, including environmental site assessments and insurance documents.

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