☐ The loan is guaranteed by guarantees. The borrower accepts that, until the loan is fully paid by borrowers, the loan includes all group companies that require access to the loan, including revolving loans (flexible credits versus a fixed amount repaid in increments) or a working capital element. This should also include all target companies acquired with the funds made available. Subsidiaries that need a provision may need to join the group of borrowers. If there is a reason why the affected companies cannot be parties to the agreement when they are executed – for example. B in the event of an acquisition by limited companies – prior approval from the bank would be required for them to be included in the agreement at a later date. If there are foreign companies in the group, it is worth asking whether they will have access to credit facilities or how. The facility agreement may also designate an individual borrower and allow that borrower to continue lending to other members of his or her group of companies. The lender should only have the right to demand repayment of the loan in the event of a delay and lawsuit. If the delay default has been corrected or reversed, the lender`s right to accelerate should cease. They may also include advance information if the borrower is interested in prepaying the loan. Many borrowers are concerned about advances and you would be wise to include a clause in your credit agreement that talks about advance options, if any.
If you allow a prepayment, you must include this information and details if they are allowed to pay all or part only in advance and if you charge a down payment fee if they wish. If you charge a down payment fee, you need to state in detail how much it will be. Traditionally, lenders require that a percentage of the principal be paid in advance before they can pay the balance. If you do not authorize the advance, you must state in detail that this is not permissible, unless you, the lender, have given written permission. An individual or organization that practices predatory credit by calculating high-yield interest rates (known as a „credit hedge“). Each state has its own limits on interest rates (called „usury rate“) and credit hedges to be illegally calculated higher than the maximum allowed rate, although not all credit sharks practice illegally, but misceptively calculate the highest statutory interest rate.