Commercial Real Estate Loan Documentation
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In this 2nd course of the Loan Documentation Skill Series, participants will explore common commercial real estate loan documents and their roles, focusing on mortgages, deeds of trust, rent assignments, and assessing property cash flow versus liquidation for debt service.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
Participants identify and explore the role and purpose of common commercial real estate loan documents for an income producing property, including mortgages and deeds of trust, assignment of rents agreements, environmental risk questionnaires, estoppel certificates, lease agreements, and subordination, non-disturbance, and attornment agreements in which a pending purchase of an office building provides the focal point for pursuing all webinar issues. In addition, Participants address the relative importance of assessing property cash flow versus cash flow from property liquidation in assuring proper debt service and ultimate loan repayment.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- Commercial Credit Administration
- Commercial Real Estate Administration
- CRE Lending
- Non-Profit Lending
- Loan Review
- Special Assets
- Internal Audit
- Construction Lending
- Non-Profit and Municipality Lending
- Health Care Provider Lending
- Private Banking
- Credit Analysis
- Loan Support
- Loan Documentation
Prerequisites
Familiarity with the operating statement for an income producing property, a working knowledge of the credit decision process, and an understanding of the role collateral plays as one of numerous potential sources of interest-bearing debt service.
Objectives
By the end of the webinar, participants will be able to:
- Identify the fundamental objectives of loan documentation, in general, and commercial real estate loan documentation for an income producing property, specifically.
- Identify the most common commercial real estate loan documents, such as the promissory note, the business loan agreement, the corporate borrowing resolution or partnership authorization, the security agreement, a continuing commercial guarantee, etc., and understand the role and purpose of each such document.
- Understand and state the purpose and importance of the environmental questionnaire, the environmental transaction screen, and phase I and II environmental audits.
- Understand and state the purpose and importance of the lease agreement, the subordination agreement, and the estoppel certificate.
- Understand and state the purpose and importance of the assignment of rents agreement and the attornment agreement.
- Assess if proper loan documentation, properly executed, is generally sufficient to assure proper performance of a commercial real estate loan.
Materials(access provided with registration)
- Credit Refresher on CRE Loan Documentation and Risk
- Reference Guide for Loan Documentation
- Old San Jose Bank & Trust Memorandum re the Adobe Plaza Transaction
- Selected Loan Documents for the Adobe Plaza Transaction
- Exercise for the Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 2 of 2 in the Loan Documentation Skill Series
Commercial Business Loan Documentation
Commercial Real Estate Loan Documentation
