Commercial Loan Application. See the Commercial Loan Application and Commercial Loan Application Summary forms located at the end of this Chapter.
Financial Statement of Borrower and all Guarantors.
Commercial Loan Agreement or Line of Credit Agreement which sets forth the conditions of the credit. See the forms located at the end of this Chapter. A Request for Advance will be needed for advancing or revolving lines.
Disbursement Authorization. Although not required in a commercial transaction, this form is recommended where all monies from a loan transaction do not go to the borrower. Like a HUD-1 in a consumer transaction it allows the Bank to show a complete listing of the disbursements of all monies. A sample form is located at the end of this Chapter.
Promissory Note. See the Commercial Promissory Note and Universal Note forms located at the end of this Chapter.
Deed of Trust signed by record owner of property and filed in the appropriate county. Two forms are located at the end of this Chapter. The Real Estate Deed of Trust (with Future Advance Clause) (Form AG/CO-DT-TX) which is for commercial and agricultural property. It contains a pledge of UCC (non-real estate) collateral and can be used for leasehold interests). The Deed of Trust (with Future Advance Clause) (Form RE-DT-TX) is for any non-homestead property. It does not include a pledge on UCC personal property.
Assignment of Rents and Leases. If the deed of trust does not contain an assignment of rents and leases, a separate form is needed. A sample form is located at the end of this Chapter.
Request for Estoppel Certificate (Leases & Rents) from Lender to Tenant and Tenant Estoppel Certificate to be signed by the Tenant to confirm notice to the Tenant of the assignment of the debtor’s rights under the lease and to the rents.
Security Agreement. A credit-based loan often as collateral all assets of the borrower, not just real estate. If the deed of trust form does not contain a pledge of UCC (non-real estate) collateral, a separate security agreement is needed. See the Agricultural/Commercial Real Estate Security Agreement form located at the end of this Chapter.
Form UCC-1 Financing Statement on fixtures filed in the same county where the Deed of Trust is filed. The Deed of Trust may be filed as a nonstandard Financing Statement if it contains all the required language.
Form UCC-1 Financing Statement on UCC assets filed with the Secretary of State.
Appraisal.
Survey, Title Policy Commitment and Title Policy for amount of loan.
Flood Hazard Determination, Notice to Borrower of Property in Special Flood Hazard Area (see forms located at the end of Chapter 6) and Flood Insurance Policy, when required.
Evidence of Comprehensive Liability Insurance. Require a provision that the insurance company will notify the Bank of cancellation or a major change in coverage. See Chapter 7, “Other Insurance”.
Evidence of Insurance on Improvements showing the Bank as mortgagee. Require a provision that the insurance company will notify the Bank of cancellation or a major change in coverage. See Chapter 7, “Other Insurance.”
Environmental Risk Assessment. See Chapter 5, “Environmental Issues.”
Debt Subordination. If the borrower has other debt, the Bank may condition its extension of credit on the subordination of the prior debt. A Debt Subordination Agreement form is located at the end of this Chapter.