Credit Evaluation School Instructor eBook - Oct 2023

Internal Use Only

Indebtedness is the balance of a 1,100M note originated 10-5-16 with principal and interest payable at $7,567 per month for 20 years. Purpose of the loan was to purchase an existing restaurant and add an indoor golf simulation bay. Source of repayment is from the operation of the bar. Loan was 78 days past due and payments have been extended five times since origination. A payment was made during the examination bringing the note current.

Purpose

Purpose is usually next and the entire first paragraph is Purpose related. What other information might be on the linesheet for Purpose? Purchase price and % financed; Cost of Improvements. Who can tell me which paragraph covers Payment?

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