Credit Evaluation School - May 2023

Reference Guide for Credit Documents

Promissory Note • Contract between bank and the borrower • Should include: – Date of loan – Amount of loan – Interest rate

– Repayment terms – Terms of default – Maturity date – Signature of borrower(s) – Signature of banker – Collateral or Reference to Security Agreement, Mortgage, or Deed of Trust

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Reference Guide for Credit Documents

Security Agreement • Collateral contract between bank and the borrower • Is collateral properly and accurately documented? • See also UCC (type of security agreement)

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