12/6/2023 0 Comments Drawdown meaning in banking![]() ![]() ![]() Any deeds of release in respect of any outgoing lender that is to be released/discharged.Financial information – for example, company financial statements and funds flow statements.Corporate approvals where the borrower is a company, authorising its entry into the loan and security documents along with constitutional documents,.Signed loan agreement and security documents,.However, customary conditions precedent for most deals include: For example, real estate finance conditions will differ to a receivables finance transaction. What CPs do lenders typically require in a loan transaction?ĭeal-specific conditions will vary depending on the type of transaction and purpose of a facility. The checklist is a useful tool to monitor the progress of a transaction and should be updated frequently and accurately. In addition, a document commonly referred to as a “CP checklist” is a live document prepared by the party holding the pen on the loan agreement (usually the lender’s solicitors) which lists the CPs alongside which party is responsible for providing the same and the status of that CP.Īs and when CP documents are produced by the borrower and/or their solicitor and the lender is satisfied with the same, the checklist should be updated and re-circulated accordingly. ![]() If the CP requirements are fairly short, they can be included within the body of the loan agreement itself. Where would you expect to see CPs?ĭepending on form of loan agreement, these are usually contained within a schedule to the agreement. Whilst deal-type dependent, generally CP requirements can be extensive and it is important to collate and actively manage these throughout a deal, particularly where third party involvement is required so as to ensure CPs are satisfied in good time. These are conditions set out within a loan agreement that must be satisfied by a borrower before it can request drawdown of a loan and before a lender is obliged to lend.ĬPs are a mechanism for the lender to ensure it obtains certain information and documents relating to both the borrower and the wider transaction before funds are made available to the borrower. ![]()
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