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Lenders in North Carolina face many legal and business risks with commercial borrowing arrangements, which is why it’s critical to retain skillful attorneys to assist with commercial loan documentation and transactions. At Howard Stallings, our commercial lending lawyers are dedicated to providing effective representation of state, regional, and national banks in a wide range of transaction. Please contact our firm to discuss your circumstances, and read on for important information about our legal services.

Legal Services in Commercial Loan Transactions

Our experience encompasses all types of commercial lending matters, from simple loan structures to complex, multi-faceted secured lending transactions. Our attorneys are adept advisors who can seamlessly combine our legal knowledge with extensive business acumen. We deliver solid advocacy when negotiating, structuring, and preparing essential documents related to:

  • Secured and unsecured loans;
  • Revolving and term lending arrangements;
  • Asset-based loans for lenders and commercial financing companies;
  • Commercial construction loans;
  • Supply chain lines of credit;
  • Equipment financing;
  • Mezzanine and equity investor financing; and;
  • Many other commercial loan documentation and transactions.

Critical Documents in Commercial Loans

The key to success and risk avoidance in commercial lending is in-depth, insightful knowledge of the documents which are essential to the transaction. Our attorneys have a keen understanding of the Uniform Commercial Code and other laws that apply to complex loan structures, so we can assist with all relevant documents.

Loan Agreement: The foundational document in commercial lending is the loan agreement, which will include all necessary terms regarding the rights and responsibilities of the parties. A typical loan agreement will include:

  • Important definitions;
  • Identification of the parties as lender and borrower;
  • Any conditions precedents that require performance by a party;
  • Representations and warranties granted the lender and borrower;
  • Affirmative and negative covenants;
  • What acts constitute default;
  • The rights of each party in the event of default; and,
  • Many other provisions.

Promissory Note: This document is a shortened form of the loan agreement, where the borrower promises to pay according to the terms and conditions of the contract. It’s important to understand that the promissory note is an asset that has value to the lender, so it can be transferred or sold like other property. However, it doesn’t bestow any rights or legal obligations on its own, as it’s backed by the loan agreement.
Letters of Credit: This document is a promise by the issuer to pay the designated monetary value to a beneficiary when the beneficiary presents it and states that all conditions have been met. In most commercial loan transactions that incorporate a letter of credit, the lender issues the paperwork to enhance the borrower’s credibility and streamline underwriting.
Additional Commercial Loan Transaction Documents: Our lawyers can also assist with other documents that may be required in commercial lending, including:

  • Corporate resolutions;
  • Agreements among multiple creditors;
  • Assignments;
  • Security agreements;
  • Pledges and guarantees; and,
  • Many more.

Contact Our Attorneys in Raleigh, New Bern or Morehead City

Our clients seeking representation in commercial loan documentation and transactions trust Howard Stallings to advocate to mitigate their potential losses. Our reputation for litigation throughout North Carolina speaks for itself. Call us today at 919-821-7700 or contact our office online. Free parking is available at our locations.

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