• Shockproof! Training
  • 1.866.237.7228
  • Non-Member

    Membership Check

    Please enter your email address and we will check to see if a membership exists for your organization.

    Check Cancel
  • Account
    • Sign in

      If you have an account, please enter your login information.

      Sign-in

      Forgot your password?

      Please provide your email address and we'll email you a reminder.

      Send it to me!

      Subscribe

      Please provide the information below to receive our mailings.

      Subscribe!
      Account Options
      1. Sign In... enter the resource center
      2. Forgot password?... memories fade
      3. Subscribe... to receive our mailings
      4. Contact us... if you have any questions, just ask
      5. Create a User Account* requires membership
  • Sign-in
  • Home
  • Products
  • Learning Paths
  • Calendar
  • Pricing
  • Communications
  • Contact Us
  • Help
  • About Us
  • Membership Check
  • Account

Instructor Blog - Credit College - Commercial Business

  1. Home
  2. Communications
  3. Instructor Blog
  4. Credit College - Commercial Business

Identifying and Mitigating Repayment Risks


  • admin

  • 9/5/2019 4:14:06 PM

  • 102

  • Credit College - Commercial Business

Q: Can you please provide a sample case for "forbear declaring events of default for a specific time period"?

A: If the Loan Agreement defined an event of default as 60 days overdue for payment of scheduled interest and principal, the lender may decide to forbear declaring an event of default for a specific period of time – 30 days for example – after discussions with the borrower. The discussions presumably convinced the lender that the borrower would pay the overdue amount within the next 30 days, thereby avoiding a declaration of default and all the associated legal issues that would follow as the lender attempted to regain the loan amount outstanding.

Q: Covenant agreement does not guarantee covenant performance.

A: You are absolutely right. This is a key point we wish to drive home. An agreement is one thing. It signals the borrower's commitment to meeting stated performance objectives. But an agreement cannot, by any means, assure performance. The proof of the pudding is in the eating, so to speak, and the eating is borrower performance.

Categories
  • Accounting Essentials(93)
  • Business Income Tax Returns(118)
  • Commercial Real Estate(30)
  • Communications(10)
  • Contractors(43)
  • Courses(1)
  • Covenants(7)
  • Credit Basics(80)
  • Credit College - Cash Flow(9)
  • Credit College - Commercial Business(195)
  • Credit College - CRE(199)
  • Credit College - Taxes(70)
  • Credit Curriculum(1)
  • Credit Write Up(30)
  • Debt Capacity(9)
  • EBITDA(25)
  • FASB95(10)
  • Financial Analysis(50)
  • Five Cs of Credit(10)
  • Fund Accounting(49)
  • General(0)
  • Global Cash Flow(46)
  • Healthcare(17)
  • Loan Documentation(45)
  • Minimum Financial Data(12)
  • Not for Profit Analysis(22)
  • Personal Income Tax Returns and Cash Flow(65)
  • Problem Loans - Loan Classification(2)
  • Projections(22)
  • Statement Spreading(5)
  • Stress Testing(1)
  • Technical Issues(8)
  • Testing(1)
  • Tools(1)
  • Trusts(3)
  • UCA Cash Flow(56)
  • User Community(6)
  • Working Capital and Cash Flow(26)
Shockproof! Training

PO Box 30304 Walnut Creek, CA 94598
1.866.237.7228 support@shockproof.com

  • About
  • Career Opportunities

© Copyright 2001-2022 Shockproof! Training