Enforcement of Loans, Guarantees & Loan
Documentation Workshop

Effectively Negotiate, Draft and Document,
Syndicated Loans & Major Loan Agreements

26 – 29 July 2022, Sandton Centre Johannesburg South Africa,

03 – 07 October 2022 - Dubai - UAE

Register Now! Limited Seats Available!

Public R16, 999.00

Online R10, 999.00

Online R10, 999.00

Public R16, 999.00

Online R10, 999.00

2500.00 USD - DUBAI

Course overview:

One difference between a great commercial lender and an average commercial lender is the understanding of loan documents and insightful knowledge of key terms found in loan documents

Africa is currently at the front of the pack of emerging markets with its high levels of economic growth and improved governance and stability. As major transactions and project financing opportunities emerge, domestic corporates and multinationals operating in Africa need access to debt to finance their operations.

The Four Day Enforcement of loans, guarantees and Loan documentation will teach you the essential skills to effectively negotiate, draft and document, syndicated loans and major loan agreements.

You will Gain practical knowledge and an in depth understanding of:

  • Negotiating loan documentation from both the financier and borrower perspectives
  • The interpretation of various clauses under common law
  • Enforceability issues and potential pitfalls in the drafting and negotiation of guarantees and letters of support
  • Different types of securities including mortgages, pledges, liens, constructive trusts, fixed and floating charges, mortgage debentures, and security over property, shares and insurance assignments
  • The implication of insolvency on the contractual rights of all parties involved
  • Be guided through the essential elements of various loan transactions
  • Learn how to negotiate representations, covenants and events of default from both a lender’s and borrower’s perspective
  • Gain a thorough understanding of the real value of security
  • Recognise pre-contractual issues and the legal nature of a letter of commitment
  • Improve your knowledge of interbank markets and basic administrative provisions
  • Become familiar with the standard ‘boilerplate’ provisions
  • Understand the concept of due diligence
  • Be able to deal with the transfer of loan obligations
  • Master common banking expressions

Who Should Attend:

  • In-house lawyers in banks and financial institutions
  • Legal Managers
  • Bankers concerned with the negotiation of loans
  • Bank executive involved in the documentation of loans
  • Credit control officers
  • Credit administration
  • Treasurers
  • Financial Controllers
  • Corporate Relationship Managers
  • Head of Risk and Portfolio Managers
  • Loans administrators
  • Credit Analysts Officers

Course Outline:

Introduction

  • The most common structures of loan transactions
  • Single banks and syndicated loans
  • Term loans and revolving credit facilities
  • Single currency and multi-currency facilities
  • Loan and guarantee facilities
  • Secured and unsecured facilities

Review of key loan agreement issues

  • “Relevant companies”
  • Conflict between representations, conditions precedent, undertakings and events of default
  • The negative pledge
  • The cross default clause
  • The material adverse change clause
  • Linking the loan to the borrower’s rating
  • “Material”, “reasonable” worth the debate?
  • Grace periods
  • Prepayment events
  • Subjectivity and control in the context of events of default

The certification process in this course will examine the knowledge and skill level of individuals in the following areas:

  • Role of loan review in banks
  • Importance of the lending function
  • Importance of credit policy compliance
  • Determining credit worthiness through credit analysis
  • Interpretation of financial statements
  • Net operating income analysis during the lending process

Five steps in the documentation process including documents to:

  • Identify the borrower
  • Legally classify and value the collateral
  • Evidence the debt
  • Attach the collateral
  • Commercial lending compliance

The loan review certification curriculum will cover:

  • Major regulatory lending guidance for bankers/lenders to follow
  • Loan grading system
  • Communications skills with bank personnel and regulators
  • Preparations of loan review reports for internal and external review
  • Loan portfolio analysis and trends
  • Past due
  • Concentrations
  • Technical exceptions

Further, the course will also highlight best practices in the loan review process such as:

  • How to minimize losses by the early identification of credit weaknesses
  • How to provide essential information for determining the adequacy of valuation allowances
  • How to monitor compliance with policies, procedures, laws, and regulations
  • How to provide senior management and the board of directors with an objective assessment of the overall quality of the loan portfolio
  • How to help ensure the integrity of financial reports

Review clauses from a loan agreement and identify key issues for the borrower.

The loan agreement in different commercial contexts

Comparison of provisions appropriate to a corporate risk, project risk and/or an asset risk

  • Drawdown
  • Financial ratios
  • Undertakings
  • Defaults
  • Additional considerations where the borrower is a special purpose company

Responsibilities of the agent bank in syndicated lending

  • Responsibilities and liabilities of the agent bank in syndicated lending
  • Corporate guarantees
  • Letters of support / comfort letters
  • Security issues

Participants will be given a scenario and asked to spot the legal issues.

Structural issues

  • Damages and debt – what are the differences?
  • Structural subordination
  • Substitutes for guarantees e.g.
  • Commitments to inject capital
  • Comfort letters
  • Put options, leases, offtake agreements and other contractual support
  • Contract assignments
  • Security on bank accounts
  • Security, title financing and recharacterisation

Participants will review key terms of a contract which a bank is proposing to take as security and identify issues which need to be resolved.

Intercreditor arrangements

  • We will review a number of different intercreditor agreements relevant to different circumstances.

End of the workshop

IN HOUSE AND ONLINE TRAINING

While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.

For Registration and other Training arrangements,
contact us on the detail below.
SOUTH AFRICA Tel: +27 11 057 6001
KENYA Tel: +254 11 353 1082
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com