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FAQs

Can I negotiate terms of a Loan Commitment?

Yes, although your likelihood of success in making amendments will largely depend upon your bargaining strength with the lender. Lenders have standard security panels that they will require although depending upon their assessment of the loan risk, a Lender may be convinced to dispense with the requirement for personal guarantees and/or collateral security from third parties. You may be able to qualify representations and warranties that you make and ongoing reporting required. Loan commitments will have numerous conditions that must be met before the Lender has to provide the funds. Usually, the Loan Commitment indicates that if these conditions are not met, the Lender may still keep the Commitment Fee, which may be significant. Before signing the Loan Commitment, you should review it with your lawyer in detail to ensure the conditions required are terms that you are able to fulfill and are not beyond your control, or worse, conditions that only the Lender has the ability to fulfill.  

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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