2023 Loan Documentation

Join us for CBA's Loan Documentation program that combines consumer loan documentation as well as commercial loan documentation. For the best deal, sign up for both days; however, if you only need one or the other, we have made it available for you to sign up for either session. 



Consumer Loan Documentation - June 15

Loan Documentation is a critical component in lending.  After the decision to make a loan has been made, the next step is the documentation and closing process.  Loan Documentation is critical now due to the increasing amounts of consumer debt nationwide due to individuals relying upon credit to meet normal living expenses.  The problem is many consumers are still financially weak.  This part of the lending process is essential in order to avoid loan losses due to poor documentation.  Many community banks assign this important responsibility to Loan Officers and Loan Administrators.  If not performed properly, poor documentation can cause loans to be adversely classified even if the underlying credit is sound or if the loan is performing as agreed.

The purpose of this one-day session is to provide participants with a good understanding of the Consumer Loan Documentation process.  Participants will be exposed to the five steps in the loan documentation process, which include: 

1. Identifying the Borrower
2. Identifying and Documenting the Collateral
3. Evidencing the Debt
4. Attaching the Collateral
5. Perfecting the Security Interest

Each of the five steps requires certain documents to accomplish their respective purpose.  The primary documents to be presented are as follows:

1. The Application
2. Documents required to identity the borrower Under the U. S. Patriot Act
3. Resolution of Authority
4. Regulation B Documents including the Application, Adverse Action Documentation and Appraisal Notification Requirements, Notice to Co-signer
5. Engagement Letters, Appraisals and Evaluations
6. Consumer Promissory Note
7. Consumer Security Agreement
8. Guaranty Agreement
9. Various Compliance Documents relating to real estate loans
10. Other documents required to support the five steps in the documentation process

The course will address the major compliance issues that relate to the lending function including Regulation B and Z  and the documents required to be in compliance with these regulations.

Commercial Loan Documentation - June 16

Loan Documentation is a critical component in the lending process.  After the decision to make a loan has been made, the next step is the documentation and closing process.  This part of the lending process is essential to avoid loan losses due to poor documentation.  Many community banks assign this important responsibility to Loan Officers and Loan Administrators.  If not performed properly, poor documentation can cause loans to be adversely classified even if the underlying credit is sound or if the loan is performing as agreed.

The purpose of this one-day session is to provide participants with a good understanding of the loan documentation process.  Participants will be exposed to the five steps in the loan documentation process, which include:

1. Identifying the Borrower
2. Identifying and Documenting the Collateral
3. Evidencing the Debt
4. Attaching the Collateral
5. Perfecting the Security Interest

Each of the five steps requires certain documents to accomplish their respective purpose.  The participant will develop an understanding of each of these documents and know when to use them.   The primary documents to be presented are as follows:

1. Documents Required to Identify Borrower and Establish Authority 

• Loan Application
• Financial Statements
• Credit Memorandum
• Typical business structures (Corporations, Limited Liability Companies)
• Corporate and Partnership Resolutions
• Opinion Letters
• Certificates of Good Standing
• Articles of Incorporation /Articles of Organization/Partnership Agreement
• By-Laws
  
  

2. Review Legal Definition of Collateral Types to Avoid Improper Classification of Collateral

•  Review of Collateral Definitions
• Review of Collateral Valuation Documents 

 
3. Documents to Evidence the Debt

• Promissory Note
• Loan Agreements
• Proposal Letters
• Commitment Letters

 
4. Documents to Attached and Support Various Types of Collateral

•  Security Agreement / Deed to Secure Debt
• Hypothecation Agreement
• Guaranty Agreement
• Subordination Agreement
• Landlord’s Waiver
• Insurance Policies

 
5. Documents Required to Perfect the Security Interest

•  Review of Revise Article 9 of the Uniform Commercial Code
• Completing and Filing Uniform Commercial Code Financing Statements
• Perfection by Control
• Perfection by Possession
• Perfection of Attachment
• Perfection of Real Estate
  
  

 6. Documents Required for Specialized Lending

•  Loan Participation Documents
• Documents required for Construction Loans.

COURSE OBJECTIVES

After completing this course, the participant will:

• Recognize the documents required to complete the five steps in the documentation process.
• Have a good working knowledge of the purpose of each document.
• Be able to provide a broad overview and meaning of each loan documents’ provisions.
• Know the rules of perfecting the security interest under the rules of Article 9 of the Uniform Commercial Code and Non-Article 9 rules

WHO SHOULD ATTEND THIS WORKSHOP?

This workshop is directed to Loan Officers, Loan Assistance, Loan Operations Staff and Loan Administrators.

Contact a Professional Development Associate for more details. Click here for the registration & cancellation policy.