Contents of the Loan Agreement:Who is the debtor? Nature of entity, subsidiaries, or co-borrowers (if relevant), etc., including especially the correct name of the borrower. The loan or loans. How much, how long, and interest rates. If the agreement covers a line of credit or any
other form of lending in which there will be subsequent advances, the manner in which the borrower will request funds, and perhaps the method of remittance by the lender, will be specified. Conditions precedent. Those things that must be accomplished or exist prior to advances. Borrower's covenants. The undertakings of the borrower as long as the loan is outstanding. Covenants are
frequently grouped as "affirmative covenants" and "negative covenants". Default. What constitutes a default, and what results from defaults. Odd and ends (a.k.a. boilerplate). Anti-waiver and notice provisions, choice of law, etc.
Contents of the Promissory Note: Who owes? How much? To whom? ("to the order of" makes it negotiable) How and when is the money to be repaid? What if it isn't repaid as agreed?
Contents of the Security Agreement: Names and addresses of debtor and creditor Grant of a security interest Description of the collateral Obligation (or obligations) which are secured by this agreement Representations and warranties Events of default; acceleration Rights and remedies
Contents of the Guaranty: Parties. Who is guaranteeing whom? Consideration & Authority. Why is he/she guaranteeing? Is it authorized? Obligations. What obligations are being guaranteed? Default. How may the guaranty be enforced? Waiver of defenses. What actions by the person guaranteed will or will not affect the guarantor's liability? Limitation of liability. What actions by the guarantor will limit / terminate liability? Security. Is the guaranty secured? Is so, by what? Guarantor's covenants and waivers. Is the guarantor's freedom of action limited?
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