NP&W News
September 10, 2014

Credit Union Business Loan Documentation

Douglas L. Burgess and Stuart Greenberg presented a seminar at the Maryland District of Columbia Credit Union Association (MDDCCUA) focused on business loan documentation.  The presentation included a handout and an exhaustive appendix of sample materials.

The Table of Contents for the presentation was as follows:

§                                         TOPIC
1  Introduction – Types of Member Business Loans: CREL; Asset Based Lending, A/R and Inventory, Government Contract Assignment Lending; Term Loans-  Short Term Working Capital, Letters of Credit; SBA Lending
2  Business Loan Policy / Compliance Issues§§
3  Loan Memo / Underwriting Issues / Account Officer Responsibility
4  Commitment Letter – Checklist of Essential Terms to Include; Dealing with the Spousal Guarantor and ECOA Compliance Issues


5 Agenda – Your To Do Checklist to Document and Close Your Loan


6 CREL Loan Documentation:  Note, Deed of Trust, Mortgage, Guaranty, Assignment of Rents


7 Asset Based Lending Documentation: Note, Guaranty, Security Agreement, Financing Statement,(UCC),Pledge


8 Other Loans including Short Term working Capital and Assignment of Claim Act Government Contract Documentation: Note, Assignment of Claims


9 Closing Instruction Letter to Title Company and/ or Counsel or Internal Loan Documentation Memo that lists requirements and compliance with loan policy
10 Loan Administration and Loan Review issues
11   Loan Modification, Extension
12  Loan Guaranties, Communication with Guarantor(s)
13  Remedies Upon Default – Who has responsibility for this and how this is communicated to the senior credit officer, Audit Committee and/or Board of Directors.
14  Workout, Forbearance
15  Participation Agreements– Purpose, role of lead/agent bank, compliance with loan policy and NCUA regulations
16  Knowledge and Continuing Education – credit schools, training, etc.
17  Lender Liability-What it is and how to deal with it- Purpose and Pitfalls
18  Fraud – Borrower and Guarantor Loan Fraud
19  Regulatory Examination of Loan Portfolio

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