Posts Categorized: Banking and Finance

UCC Article 9: What You Need to Know, Part 5

Clint M. Hanni April 2018 UCC Financing Statements Once the loan documents have been signed, it is imperative from the lender’s point of view that a UCC financing statement be filed in the proper location to “perfect” its interest in the collateral. This is a routine task that is easy to overlook in the rush… Read more »

UCC Article 9: What You Need to Know, Part 4

Clint M. Hanni April 2018 Security Agreements – For Debtors Let’s say that you have approached a bank about getting a loan for working capital purposes. You have inventory and accounts receivable to offer as collateral to secure the loan. After agreeing to basic terms, the bank sends you a loan agreement, a promissory note… Read more »

UCC Article 9: What You Need to Know, Part 3

Clint M. Hanni March 2018 Security Agreements – For Lenders Security agreements lie at the heart of loan transactions. If you are a lender, the security agreement is the document that insures you will be repaid. Security agreements are most often stand-alone documents, but they don’t have to be. Language creating a security interest can… Read more »

UCC Article 9: What You Need to Know, Part 2

March 2018 What is a security interest? At the heart of UCC Article 9 is the concept of a “security interest.” The UCC itself defines a security interest as “an interest in personal property or fixtures which secures payment or performance of an obligation.” The definition goes on for another eight lines, but the gist… Read more »

UCC Article 9: What You Need to Know, Part 1

Clint M. Hanni March 2018 Introduction If you’re a business owner, you’ve been using the Uniform Commercial Code (UCC) even if you’ve never heard of it.  The UCC is a model body of law adopted by all 50 states and US territories in a generally uniform manner that governs commercial business transactions, although there are… Read more »

Tips for Borrowers Negotiating a Loan: Part 6 After the Closing

Clint M. Hanni April 2017 It’s a great relief for the borrower when the documents are signed and the money is wired. What happens after the loan has closed is critical to a successful loan. 1.  Post-closing matters. The lender may have a laundry list of items for the borrower to provide after the closing…. Read more »

Tips for Borrowers Negotiating a Loan: Part 5 Closing Documents

Clint M. Hanni April 2017 Loan transactions are document intensive. When the agreements have all been drafted and agreed, it’s time for the lender and borrower to sign the documents and fund the loan. Closings can be easy or hard. Here are some tips to make them as smooth as possible.  1.  Authorizing resolutions. After… Read more »

Tips for Borrowers Negotiating a Loan: Part 3 Ancillary Documents

Clint M. Hanni April 2017 The loan agreement isn’t the only document in a loan transaction. Other documents (sometimes dozens of them) can come into play. Here are a few to consider: 1.  Security Agreement. If the loan will be secured by personal property, such as accounts, inventory, equipment or IP (patents, trademarks, copyrights), there… Read more »

Tips for Borrowers Negotiating a Loan: Part 2 The Loan Agreement

Clint M. Hanni April 2017 Once you have agreed on a term sheet for your loan, it’s time to turn to the “definitive loan documents.” The first document to get drafted is the loan agreement. 1.  Get it reviewed by an attorney. The loan agreement contains the basic terms of the deal and describes what… Read more »

Tips for Borrowers Negotiating a Loan: Part 1 The Term Sheet

Clint M. Hanni April 2017 Getting a business loan can be a long and difficult process. The bank wants to see everything, the good and the bad. Here are some tips when working with a bank to get a commercial loan. It all starts with a good term sheet. Have your lawyer review the term… Read more »