New York Checklist for Business Loans Secured by Real Estate

State:
Multi-State
Control #:
US-02991BG
Format:
Word; 
Rich Text
Instant download

Description

This is a generic suggested checklist for a commercial loan where real property is the primary collateral.

How to fill out Checklist For Business Loans Secured By Real Estate?

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FAQ

Loan Application Form Why are you applying for this loan? How will the loan proceeds be used? What assets need to be purchased, and who are your suppliers? What other business debt do you have, and who are your creditors? Who are the members of your management team? Personal Background.

Due diligence begins with a review of the underlying loan documents to understand the loan's principal terms. The first steps of loan document due diligence are to: Confirm the loan files contain all documents, instruments, and reports delivered at loan closing. Review and summarize the terms of the loan documents.

A thorough due diligence review of the borrower and its business ensures that the loan does not involve legal risks that the lender is unaware of that could endanger the repayment of its loan.

Some borrowers and environmental indemnitors can successfully negotiate a sunset clause that cuts off environmental liability for events that occur after the lender (or its nominee) takes title to the property by foreclosure or deed-in-lieu of foreclosure.

In California, loans can be secured by real property through a deed of trust. ingly, a deed of trust is a security instrument that functions like a mortgage.

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New York Checklist for Business Loans Secured by Real Estate