Credit Evaluation School - May 2023

Reference Guide for Credit Documents

Insurance • Protects the bank against damage to the property • Bank needs to be shown as the “Additional Insured” or “Mortgagee” • Check dollar amount and expiration date. • Bank may maintain a blanket policy which may cover lapses. • Make sure insurance is property/hazard policy, not a liability policy.

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Reference Guide for Credit Documents

Loan Agreement • Identifies additional terms or requirements related to the loan. • May be included in the Promissory Note (typically smaller or simple loans) • May be a separate document (typically larger or more complex loans)

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