Introduction to Real Estate Loan Covenants: Default Provisions, Representations and Warranties, and More

This CLE webinar will provide an introduction for new attorneys representing both borrowers and lenders on structuring default provisions, representations and warranties, affirmative and negative covenants, and other key provisions in commercial real estate loan documents. The panel will also highlight the most recent trends and best practices.

Strategically crafted loan documents give flexibility to the borrower and adequate protections and remedies for the lender. Carefully structured loan provisions can minimize disputes between the parties and reduce the risk of suit.

Default clauses must be carefully constructed to distinguish between a default and an event of default. Grace periods and notice and ability to cure defaults are particularly crucial to borrowers.

Affirmative and negative covenants are often among the most hotly negotiated provisions in a loan transaction. Financial covenants in real estate investment finance deals are more tightly monitored and defined in the current market.

Although property representations and warranties will vary among transactions, there are standard representations found in most loan agreements. There are also limitations (such as best knowledge) that borrowers seek to negotiate regarding the scope of representations and warranties.

Listen as our authoritative panel offers practical approaches for new attorneys representing both borrowers and lenders when negotiating, structuring, and drafting loan covenants, event-of-default provisions, representations and warranties, and other loan provisions.