Financial Covenants and Reporting Requirements Clauses: Acquisition Loan Agreement
Summary
These clauses are examples of standard financial covenants and reporting requirements that may be included in an acquisition loan agreement for financing the purchase of commercial real estate. These clauses include practical guidance, drafting notes, and alternate and optional clauses. Typically, a loan agreement imposes certain financial covenants and periodic reporting requirements on the borrower during the term of the loan. Financial covenants and reporting requirements allow the lender to monitor the cash flow and financial condition of the borrower and the property securing the loan. The capitalized terms not otherwise defined in these clauses must be conformed to the defined terms in the loan agreement that will include these clauses. Number the clauses in accordance with the section(s) of the loan agreement that will include the clauses. For a detailed discussion of acquisition loan agreements, see Acquisition Loan Agreements. For a template of an acquisition loan agreement, ...