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Commercial Real Estate Borrowers’ Ongoing Duties to Lenders

September 27, 2022 (2 min read)

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.


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.  
  • 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.

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