Managing a Borrower's Business Through a Loan Agreement 

Tuesday, August 9, 2022 
3:00 pm – 4:30 pm Eastern

Love them or hate them… loan agreements can protect your financial institution, especially with business loans.  Learn the details and objectives of these important agreements.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

• Define the loan agreement
• Know when a loan agreement is required to monitor a borrower’s activities
• Understand the rights afforded by the loan agreement
• Identify the key covenants to insert to monitor a borrower’s financial condition
• Discern the relationship of the loan agreement to other loan documents
  

WEBINAR DETAILS 

All loans have loan agreements, although some are more tangible than others.  Many financial institutions posit that loan agreements are simply too complicated and often attempt to avoid using them.  However, loan agreements can benefit both the lender and the borrower.  While the borrower must have sufficient latitude to operate the company, they must also agree to certain constraints to limit the institution’s credit exposure.  Provisions in the loan agreement must be drafted to guarantee adequate cash is conserved by the borrower to ensure continued financial viability and to repay the loan.

This webinar will address formal loan agreements that are used in large or workout loans.  It will define what this very formal and specific type of loan agreement is and what purposes it serves.  A loan agreement is a legally binding document with the following objectives:

• Set forth the agreement between the financial institution and the borrower by clearly and concisely defining the duties and responsibilities of both parties 
  
  
• Establish restrictions and qualifications on the borrower’s activities and financial condition, which are set out by affirmative and negative covenants
  
  
• Prepare an alternative plan of action that both parties agree to abide by should various contingencies make the original plan inoperable
  
  
• Serve as a communication tool and monitoring device by requiring the borrower to submit certain documents at specified times and notify the lender about certain plans (e.g., periodic financial statements and financial projections)

WHO SHOULD ATTEND? 

This beneficial webinar is designed for senior credit officers, senior loan officers, credit administration officers, loan review personnel, compliance auditors, commercial loan officers, consumer loan officers, branch managers, and credit analysts.

TAKE-AWAY TOOLKIT

• Loan covenant matrix that will recommend certain financial covenants to control various financial factors of the borrower
• Employee training log 
• Interactive quiz
• PDF of slides and speaker’s contact info for follow-up questions
• Attendance certificate provided to self-report CE credits
  

SPEAKER

Jeffery W. Johnson, MBA, Bankers Insight Group

Jeffery Johnson has been in financial services more than 40 years.  He has been VP and senior lender for a large regional bank and SVP and commercial banking division manager for a community financial institution.  Most of his career has been spent in credit administration, lending, business development, loan review, management, and training and development.  Over the last 17 years, Jeffery has provided training for several banking associations and individual financial institutions nationwide.

Jeffery holds a bachelor’s in accounting from Morehouse College in Atlanta, an MBA in finance from John Carroll University in Cleveland, a Diploma of Graduation from the Prochnow School of Banking at the University of Wisconsin-Madison, and a Graduate Certificate in Bank Management from the First American Management Institute at the University of Pennsylvania’s Wharton School of Business.

Attendance verification for CE credits provided upon request.

Webinar Sponsored by Financial Education & Development

If you are having issues with registering online, please contact CBAO's Education, Training & Special Events Coordinator, Malia Widder, (614) 610-1877.