Commercial Loan Documentation Training: Essential Training for Commercial Lending (Multi-Session)

Event ID:70100

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Download (DL)                   $799.00 includes recorded presentation, slides, and Q&A
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Duration: A total of 4.5 hours of training.
Presenters: Bill O’Brien, engagement manager loan review, Sheshunoff Consulting + Solutions
Price: $799.00 Digital Downloads. Registration includes: 3 training sessions and all course materials.
Who Should Attend? Loan officers, credit analysts, underwriters, loan review, commercial lenders, senior managers responsible for loan oversight, portfolio managers, credit review auditors, regulators, other financial professions seeking a high level of education in commercial loan documentation

Effective loan documentation is a key building block in protecting the integrity of the bank’s lending assets. Developing an in-depth understanding of a well thought-out set of documents can preserve the value of a properly structured loan, overcome its predictable challenges, and ensure the timely repayment of depositors’ monies contributing toward safe and sound banking practices.

Who would benefit from the training program?

Lenders and senior managers with duties and responsibilities including approving loans would benefit. Others involved in the underwriting, approval and monitoring process such as loan portfolio managers, commercial lenders, credit analysts, credit review auditors, regulators, other financial professions seeking a high level of education in preserving quality lending assets would also benefit from the training.

Training Sessions

The Commercial Loan Documentation Training program consists of three (3) sessions offered as live webinars or via DL format (available on-line); and updated as needed to reflect changes in prudent banking practices, regulations and market conditions.


The training sessions offer a clear, concise and comprehensive program to equip each participant with an understanding of how effective loan documents can compliment their strong analytical, underwriting and evaluation skills already employed in structuring loans to meet customers’ needs.

Session One: “What’s the Deal?” Provides a clear understanding of how fundamental concepts used to structure deals are carried through to each loan’s documentation.

  • How each loan’s purpose serves as the key starting point – Where are the proceeds going?
  • Role of the primary source of repayment in loan structure and documentation – Primary Risk
  • Identification of the key “players” and their assets – Whether your deal works will depend, in large part, upon the accuracy of this information.
  • Independent experts - when and how to use their services/reports to prudently close your loan
  • Additional Risk Identification & Mitigation – No substitute for thorough lender due diligence
  • The primary documents required for (almost) all loan transactions – Why do we need them?
  • Common loan types – Commercial & Industrial (including asset-based), Investment & Construction Real Estate

Session Two: “Documentation for Commercial and Industrial + Asset-Based Loans” Enables the participant to develop a detailed understanding of the primary documents used to memorialize their deal with the borrower. Importantly, this session will also explain how lenders can use the documents prospectively to manage the bank’s exposure through to the loan’s maturity. The documents discussed in this session will build upon the primary documents reviewed in Session One and include:

  • For Commercial and Industrial Loans
    • Loan Agreement – Structure, how the parts of the agreement work together, financial covenants
    • Covenant Compliance Certificates - Waivers, amendments, importance of testing
    • Security Agreement – Attachment vs. Perfection
    • Financial Statements – UCC-1, UCC-3
    • Assignments, including life insurance
    • Bills of Sale, Invoices – Purchase Money Security Interests
    • Pledge Agreements – possessory collateral
    • Insurance – the types & their management
    • Appraisals – Why the direct sales comparison approach?
    • Landlord’s waiver
    • SBA Documents – the authorization letter
    • Title documents – including with lien holder
  • For Asset-Based Loans
    • Maturity – Due upon Demand, curtailment requirements
    • Enhancements to the Loan Agreement
    • Borrowing Base Certificates
    • A/R, A/P Agings
    • Inventory data
    • Appraisals – equipment appraisals
    • Independent Field Examination Reports – confirm the bank’s advance rates

Session Three: “Documentation for Investment and Construction Real Estate” Enables the participant to develop a detailed understanding of the primary documents used to confirm the mutual understandings of the borrower and the lender for two of the more common real estate loan types. For investment real estate loans, the focus will center on using documentation to confirm and manage the leverage in place on the asset’s cash flow and collateral positions. For construction real estate, this part of the session will focus on the use of documentation to identify and mitigate the initial and ongoing development risks in the project. As with earlier sessions, this one will also explain how lenders can use the documents prospectively to manage the bank’s exposure through to the loan’s maturity. The documents discussed will include:

  • For Investment Real Estate
    • Title Insurance – clear ownership, prior lien holders
    • Commercial Mortgage – legal description
    • Rent Roll
    • Leases
    • Schedule of maturities for leases in place
    • Assignment of Rents and Leases
    • Appraisal – Why use the direct capitalization or discounted cash flow methods in the income approach?
    • Insurance – liability, hazard
    • Environmental Reports – indemnifications
  • For Construction Real Estate
    • Title Insurance – the importance of additional due diligence for other claims
    • Construction Mortgage – release price(s), interest reserves & their funding
    • Builder Loan Agreement
    • Budgets, disbursements, draw schedule
    • Engineer Review
    • Lien Waivers
    • Assignment of Performance Bonds
    • Certificate of Work Completed
    • AIA Form G702 & G703
    • Contract Assignment
    • Plans and Specifications, Assignment
    • Timeline
    • Advance Requisition Form
    • Insurance – Builders Risk , Assignment
    • Appraisal – Why use the development method of the income approach?


To summarize, the Commercial Loan Documentation Training program consists of three (3) live sessions delivered over two (2) days in a webinar format with supporting materials. You may also participate by listening to the DLs of each of the sessions. If you are unable to attend all three (3) live sessions, or you wish to further review sessions you've attended, you can utilize the DL.


Your conference leader for the “Commercial Loan Documentation Training” program is Bill O’Brien, Engagement Manager of loan review, Sheshunoff Consulting + Solutions. He originally joined Sheshunoff Consulting + Solutions' Risk Management Division approximately 10 years ago after a 23 year career including as a commercial lender and a senior credit officer for both money center and community banks. His career included roles as the senior officer in charge of the allowance for loan and lease losses and as the credit risk manager for New England’s largest multi-state utility with a specialization in wholesale energy trading and contract administration. Bill graduated from the University of Baltimore in 1987 with a masters degree in business with a concentration in finance and received a bachelor of science, business administration degree from Providence College majoring in management in 1982. QUALITY COMMITMENT

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