In this way, the official responsible for completing the package of monthly reports is invited to disclose all new critical safety sites. If the lawyer structures the ABL credit agreement in this way, the borrower is less likely to forget to make the necessary termination. The same approach can be used for other communications (e.g.B. For communications regarding new bank accounts, commercial claims and intellectual property). Compliance Certifications – The borrower`s declaration of compliance with the terms of the loan agreement during the specified period. Credit – A detailed memorandum transmitted from one party or company to another that grants credit for returned goods, certain omissions, on payment or other causes. Revolving Credit Facility – A credit agreement that allows the borrower to claim and repay advances often. The product is typically used to support the borrower`s working capital needs. Purchase Money Security Interest (PMSI) – The Uniform Commercial Code (UCC) provides that when a creditor finances a debtor to acquire certain goods, the creditor may enhance a security interest in the goods, despite the existence of financing statements on similar guarantees. Pari Passu – credit facilities in which two or more lenders are treated on the same level under a credit agreement. Most often applied to collateral, but may also relate to credit structure, documentation, service life or other essential conditions. Authorized guarantees – A duration defined in the loan agreement that determines the guarantees that can be included in the credit base.
Non-notification – The bank does not inform the borrower`s mortgage accounts that they must make payments directly to the bank. Non-notification often involves a disposition of the closing box. The bank may also allow the borrower to collect payments and transfer them to the Bank for credit in return for loan assets. Once the transaction is complete, establish a compliance list for the borrower, which summarizes secularism of what the borrower can or cannot do to meet their ABL credit agreement. Include regular, event-based reporting obligations and operational negative covenants. Integrating these requirements can be a valuable tool for borrowers, as they navigate through the sometimes overwhelming number of commitments contained in ABL credit documents. In addition, the lawyer should consider keeping a current list of compliance issues raised by clients. . . .