The commercial lending process is essential in order to avoid loan losses due to poor documentation, especially during a bankruptcy case. Many community banks assign this important responsibility to Loan Officers and Loan Administrators. If not performed properly, poor documentation can cause loans to be essentially unsecured or unguaranteed when the bank expected to have some form of credit enhancement (collateral) as a secondary source of repayment. Each of the five steps requires certain documents to accomplish their respective purpose.
The participant will develop an understanding of each of these documents and know when to use them.