Commercial Real Estate Borrowers’ Ongoing Duties to Lenders

In commercial real estate acquisition loans, lenders typically impose financial covenants and reporting obligations on borrowers for the life of the loan. Lenders commonly require borrowers to maintain a certain debt service coverage ratio and a specific loan to value ratio, and require borrowers to make available their financial records for inspection and examination upon request. Such provisions allow lenders to monitor borrowers’ cash flow and financial condition and the properties securing the loans. See these clauses that lenders may use. For additional guidance on commercial real estate financing, see the Related Content below.

READ NOW »

Related Content

• Acquisition Loan Agreements
  Read this practice note for an in-depth discussion of acquisition loans and loan agreements, including term sheets and loan commitments, lender’s conditions, borrower representation and warranties, and more.  

• Commercial Real Estate Acquisition Loan Resource Kit
  Access this resource kit for guidance on financing commercial real estate and links to practice notes, checklists, templates, and clauses.

• Legal Opinions in an Acquisition Loan
  Learn about legal opinions for commercial real estate loan transactions. Legal opinions are usually prepared by the borrower’s counsel for items relating to the borrower’s corporate capacity and the enforceability of the loan documents.

Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.

• Listen Up! The Practical Guidance Podcast features interviews with industry-leading attorneys on cutting edge issues in the law: NFTs, Cannabis, COVID-19, and more.
• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
• The Practical Guidance Journal Fall Edition features impacts of the Dobbs v. Jackson Health Organization decision on employers, healthcare, insurance, and privacy concerns, and tracks the status of state law changes.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.    
• Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.

*Offer is void where prohibited by law or by your employer’s policies. Individual must complete the survey in its entirety and in accordance with all instructions by December 31, 2022, to be eligible for gift card offer. Only one gift card, valued at $25, will be given per individual while supplies last. Employees of any governmental entity are not eligible to participate in this offer. No returns or exchanges. Offer is valid through December 31, 2022. The questionnaire responses will be reviewed for accuracy and relevancy prior to delivery of the gift card, data bank, and report. Other restrictions may apply.

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+