Loan Documentation

Download this course description (pdf)

Business Issue - Once a loan decision has been made, the lender’s ability to collect on that loan may rest on the accuracy and completeness of the loan documentation.

Omega Performance’s Solution - Loan Documentation teaches lenders how and why to choose and prepare accurate, comprehensive loan documents. Participants also learn to use documentation checklists to assist them in choosing documents for new loans and in diagnosing documentation errors in existing loans.

What Is Included

The Loan Documentation training program consists of a single self-study module and is generally accompanied by a workshop. Loan Documentation teaches participants how to select and prepare loan documents based on the agreements between borrower and lender.

The self-study module includes the following four units:

Unit 1: Signing Capacity and Authority addresses signature requirements. The requirements differ depending on the type of business organization to which the loan will be made. Samples of appropriate signature formats are provided for each business type.

Unit 2: Basic Documentation presents the most common forms of basic documentation including notes, borrowing resolutions and disclosure statements. Participants learn when and why each document is needed.

Unit 3: Supporting and Specialized Documentation discusses supporting and specialized documents such as guaranties, security agreements and loan agreements. This unit is divided into five sections:

Section 1: Informational Documents, Letters and Loan Agreements
Section 2: Guaranties and Subordinations
Section 3: Secured Transactions
Section 4: Special Documentation
Section 5: Common Documentation Problems

Unit 4: Documentation for Specific Loan Types provides a series of checklists of the documentation required for specific loan types.

Delivery Options

To effectively implement Loan Documentation, Omega Performance recommends one of three approaches: self-study only, self-study with mentor, or self-study with workshop.

Results You Can Expect

Loan Documentation helps you and your lenders:

Improve loan quality through more accurate and effective loan documentation
Reduce risk through a better understanding of the "whys" behind the choice of loan documents
Identify situations in which loan documentation must be tailored in order to fully capture the loan agreement

Who Should Be Trained

Loan Documentation is recommended for:

Entry-level lenders and analysts with commercial lending backgrounds
Experienced lenders who need a documentation refresher
MBA new hires
Documentation specialists, loan assistants and others who assist the lender in preparing loan documents and obtaining borrowers’ signatures on documents

Prerequisites

To get the greatest benefit from the Loan Documentation seminar, lenders and potential lenders should have an understanding of loan structure and of the terminology used in discussing loan structure provided in Omega Performance’s Commercial Loans to Business or Commercial Loans to Small Business or their equivalent. Those who assist lenders in preparing documents and obtaining borrowers’ signatures on loan documents, but do not make the choice of documents, will benefit from Loan Documentation, even with only a general knowledge of the lending process.