Basic Concepts Applicable to All Borrowers & Lenders 2026

Webinar Overview

Attorneys advising clients on commercial transactions must understand the legal structure of business lending arrangements, but also apply legal judgment in drafting, negotiating, and enforcing loan agreements. Regardless of loan type (e.g., cash flow, asset-based lending), core legal concepts and drafting considerations remain consistent. This program focuses on the attorney’s role in structuring, documenting, analyzing, and negotiating business loan agreements on behalf of clients, with emphasis on enforceability, risk allocation, and compliance with applicable law. Terms covered will be examined from a legal and drafting perspective, including:

• Repayment obligations under the loan agreement
• The contractual cost of borrowing, including considerations of enforceability and compliance with applicable law
• Structuring repayment obligations over time, including the legal implications of amortization schedules
• Collateral: assets pledged and governed by security interests under applicable commercial law (e.g., UCC Article 9)
• Incorporating borrower financial capacity into covenant drafting and compliance analysis
• Covenants: legally binding affirmative and negative covenants, including drafting considerations and enforcement risk
• Default: Failure to meet the terms of the loan agreement, either through missed payments (payment default) or failure to meet covenants (covenant default)
• Term Loan: A loan with a fixed repayment schedule over a set period
• Contractually defined events of default and associated remedies available to lenders
• Guarantor: third-party guaranty obligations and associated enforcement considerations
• Prepayment and Yield Protection Provisions: Including penalties and make-whole clauses
• Senior vs. Subordinated Debt: Senior debt takes precedence over subordinated debt in the repayment hierarchy during liquidation, including intercreditor considerations
• Security Agreement: Key loan documentation establishing and perfecting security interests
• Usury Laws: Regulations that set maximum interest rates lenders can charge
• Balloon Payment: A large, one-time payment due at the end of a loan term after smaller periodic payments and associated legal risks

Learning Objectives:

• Identify and Apply Fundamental Loan Terminology in Legal Contexts: Define key loan-related terms, including principal, interest rate, amortization, collateral, and guarantor, and explain their significance in drafting and interpreting loan agreements
• Distinguish Legal Structures of Commercial Loans
• Interpret Key Legal and Regulatory Frameworks: Summarize the implications of usury laws, default scenarios, forbearance agreements, and loan syndication in compliance, enforcement, and dispute scenarios

Apply Legal Concepts in Client Representation: Utilize loan terminology and financial metrics to advise clients, draft provisions, and negotiate loan agreements effectively

Other Webinars in this Series

• What Kind of Loan? 2026 (Premiered on April 15, 2026)