Preventing an inter-lender war following a borrower default

Article Abstract:

Inter-lender disputes in loan participation agreements can be prevented by resolving drafting recommendations on the Modification clause and Remedies clause of the transaction. The lender and the participants of the loan agreement should evaluate the Remedies clause to determine its flexibility for loan restructurings and other modifications to the loan security document. The continuation of the rights of the participant after a post-default and the agreement on waivers between the lender and the borrower should be stated in the Remedies clause.

Debt Management-Long Term Loans, Loans, Loan servicing

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US construction activity to level off in 1996 according to construction industry forecast

Article Abstract:

The Construction Industry Forecast predicted a decline in construction activity for 1996 based on a survey of 900 construction distributors and contractors. Thirty-six percent of the respondents are expecting an increase in construction activity on 1996 compared to 43% in 1995. Thirty-six percent of contractors believe that lack of work or projects will contribute to the decline of construction activity in 1996 while 34% of distributors expressed their concern for declining profit margins on 1996.

Forecasts and trends

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Drafting effective completion guaranties

Article Abstract:

Completion guaranty is an agreement executed by a construction loan borrower to a project lender, attesting compliance to approved plans, specifications, budget, and time. This is sought by lenders to ensure completion of project on time for refinancing or sale, with proceeds to defray construction loans, and interests prior to maturity dates. Lenders may detail monetary remedies, or define the kind of damages the guarantor may assume in case of failure on his part to complete the project.

Savings & Loan Assns, Savings Institutions, Cases, Financial services industry, Financial services, Savings and loan associations, Glendale Federal Savings and Loan Association, Marina Ventures International Inc.

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