LOAN DOCUMENTATION & LEGAL ISSUES IN LENDING

OVERVIEW

The course will enable participants understand the fundamentals of the law of contract in a lending relationship. Loans and Advances constitute the single largest asset in bank Balance Sheet, and is the most important earning asset in the portfolio. It is therefore imperative for banks to take every precaution to ensure that their position is adequately secured.

COURSE OBJECTIVE

By attending this training course the delegates will be able to:

• Understand the characteristics and usefulness of each security type;
• Get acquainted with the flow of the loan documentation process
• Appreciate the necessity for loan documentation and perfection of security and aware of the processes involved in perfecting each security type
• Become familiar with the process and pre-requisite of security realization
• Achieve improvement in loan quality
• Appreciate the focus of banking legislation as it bears on the professionalism of bankers

TARGET AUDIENCE

Credit and marketing, loan/credit administration, loan Review/ Recovery and all those involved with loans and security documentation. Internal Control Personnel will enhance their capabilities for prompt detection of infractions

COURSE CONTENT

• The Credit management process
• Review and analysis of credit type and relevant securities
• Mortgages, Charges (fixed and floating)
• Equipment Leasing, Trust Deeds, loan agreement, lien, Pledge, Set off, gurantees and indemnities (including performance and standby letters of credit), Bill of sale, Warehouse financing, Subordination agreement, Hypothecation e.t.c
• Enforcement of securities
• Realization
• Bankruptcy and winding up
• Special documentation for bankruptcy and winding up
• Credit administration
• Loan documentation
• Statutory considerations in bank lending; (Banks and Other Financial Institutions Act (BOFIA)
• Failed Bank Act and lessons there from
• Impact of government policy/legislation on Documentation

COURSE DURATION: 3 Days