Construction Loan Term Sheets and Loan Commitments

Summary

This practice note discusses loan term sheets and loan commitments (or commitment letters), which are instruments typically issued by a lender to a borrower in anticipation of the making of a loan by such lender to such borrower. Both of these instruments are intended to lay out the framework for the proposed loan transaction and will attempt to describe the overall transaction and the material terms and conditions thereof. In some cases, these instruments may contain general statements regarding the intent of the parties and their ultimate goals in entering the loan transaction. For a sample loan term sheet, see Construction Loan Term Sheet.