DRAFTING: COMMERCIAL FINANCE (2) (BUS 555)

Professor Houman Shadab

The course covers basic commercial finance transactions and the negotiation and drafting of related documentation involving secured finance and credit arrangements; in addition, this course seeks to provide students with an understanding of the legal framework and practical considerations affecting commercial finance transactions from the perspective of both a lender and a borrower.

The course covers (1) overarching concepts and ideas - practical and legal - concerning finance projects and secured lending including diligence; (2) the inception of deal including underwriting and creating commitment letters, term sheets and letters of intent; (3) selecting and drafting loan documentation that reflects the spirit of the deal, (4) negotiating loan documents as a borrower and as a lender; (5) securing the bank's interests in special forms of collateral such as inventory and receivables, (6) dealing with real estate related collateral and protecting the bank's interests, (7) corporate authority documents - what and why, (8) opinion letters - what they are and how to read them; (9) practical issues and considerations including how to get a deal closed.