CLE
Jake Rheaume
Jake Rheaume Finance Associate
Understanding Loan Transactions for the Non-Finance Attorney
Overview AI Webinar Summary
Understanding Loan Transactions for the Non-Finance Attorney

This presentation aims to demystify loan transactions for attorneys who find themselves providing counsel to borrowers. It does so by giving purposeful explanations of the various documents contained in a loan document package, and by giving practical advice for reviewing those documents and providing quality representation for their clients.

Topics covered include:
Banking & Finance Law Practice
Agenda:
  • Introduction and Purpose
    • The purpose of this CLE program is to provide an overview for attorneys who do not frequently come in contact with loan transactions as well as practical advice for lawyers reviewing loan documents

  • When Might You Encounter Loan Documents as a Non-Finance Attorney?
    • Your client is buying a home
    • Your small business client is getting an SBA loan
    • Your client (either individual or small business) is making an investment

  • Anatomy of a Loan Document Package
    • LaserPro Documents versus Attorney-Prepared Documents
    • A review of loan documents, including loan agreements, mortgages, guaranties, and other security documents

  • Practical Advice to Non-Finance Attorneys Acting as Counsel to Borrowers
    • Know your audience
    • Confirm every business point you’re able to
    • Act as a liaison

  • Questions & Answers (as time permits)
Duration of this webinar: 60 minutes
Originally broadcast: March 08, 2024 1:00 PM PT
Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

Introduction and Speaker Overview
Jake Rheaume, a finance attorney, is introduced as the speaker, focusing on loan transactions for non-finance attorneys. Jake aims to demystify the loan documentation process, which can be complex for those unfamiliar with finance. He highlights scenarios where non-finance attorneys might encounter loan documents, such as assisting clients with mortgages or small business loans. Jake plans to cover different types of loans, including term loans, HELOCs, and SBA loans, to provide a comprehensive understanding.
Loan Documentation Basics
Jake discusses the SBA 504 loan program, highlighting its benefits for small business owners, such as fixed interest rates. He contrasts the SBA 504 with the SBA 7(a) loan, which offers variable rates and can be used for various purposes. Jake explains the importance of understanding loan documentation, especially for attorneys who may encounter it in litigation or client representation. He introduces the concept of Laser Pro and attorney-prepared documents, explaining their significance in understanding the structure of a loan deal. Laser Pro documents are typically used for straightforward transactions, while attorney-prepared documents are for more complex deals.
Types of Loan Documents
Jake explains that LaserPro documents indicate a bank's decision to avoid outside counsel, reflecting a more risk-averse approach. Attorney-prepared documents are used for complex transactions, allowing for more negotiation and customization. He outlines the key components of a loan agreement, including the loan type, repayment schedule, and interest rate. Jake describes the three major types of loans: term notes, revolving lines of credit, and non-revolving lines of credit. He emphasizes the importance of understanding the loan agreement's terms, such as default conditions and lender remedies.
Practical Advice for Non-Finance Attorneys
Jake advises non-finance attorneys to understand the mindset of bankers when reviewing loan documents, especially Laser Pro forms. He highlights the limited negotiation flexibility with loans from governing agencies like the SBA or HUD. Jake stresses the importance of confirming business points and acting as a liaison between the client and lender. He advises attorneys to gather information on property assessments, ongoing construction, and zoning changes. Jake emphasizes the need for thorough due diligence to prevent issues and ensure smooth transactions.
Common Issues and Best Practices
Jake discusses the importance of certificates, resolutions, and opinion letters in loan transactions. He explains that certificates and resolutions ensure proper authorization of the loan by the corporate borrower. Opinion letters serve as a form of assurance for lenders, confirming the legality and enforceability of loan documents. Jake advises borrower counsels to be thorough in their due diligence to prevent future legal challenges.
Q&A Session
Jake answers questions about acceleration clauses, collateral determination, and loan covenants, emphasizing the importance of understanding these terms. Jake advises on the responsibilities of guarantors and the complexity of certain loan transactions, recommending non-finance attorneys to seek help if needed. He highlights the importance of collaboration and communication in loan transactions to ensure successful outcomes. Jake stresses the significance of understanding checklists and documentation requirements to avoid last-minute issues.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Continuing Legal Education (CLE) Credits

*CLE credit is only available to Justia Connect Pros. Not a Pro? Upgrade today>>

California CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: March 7, 2026

South Carolina CLE

Status: Approved

Credits: 1.00 General

Difficulty: All Levels

Earn Credit Until: December 31, 2025

North Carolina CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: February 28, 2026

Texas CLE

Status: Approved

Credits: 1.00 General

Earn Credit Until: February 28, 2026


This presentation is approved for one hour of General CLE credit in California, South Carolina (all levels), and North Carolina. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours.

Justia only reports attendance in jurisdictions in which a particular Justia CLE Webinar is officially accredited. Lawyers may need to self-submit their certificates for CLE credit in jurisdictions not listed above.

Note that CLE credit, including partial credit, cannot be earned outside of the relevant accreditation period. To earn credit for a course, a lawyer must watch the entire course within the relevant accreditation period. Lawyers who have viewed a presentation multiple times may not be able to claim credit in their jurisdiction more than once. Justia reserves the right, at its discretion, to grant an attendee partial or no credit, in accordance with viewing duration and other methods of verifying course completion.

At this time, Justia only offers CLE courses officially accredited in certain states. Lawyers may generate a generic attendance certificate to self-submit credit in their own jurisdiction, but Justia does not guarantee that lawyers will receive their desired CLE credit through the self-submission or reciprocity process.

Looking for CLE credit? Visit CLE Dashboard CLE Accreditation
Speaker
Jake Rheaume
Jake Rheaume Finance Associate
Jake is a Finance Associate Attorney working in Chicago, Illinois. He has experience representing institutional lenders in upper-middle market syndicated loan transactions, particularly in the healthcare field.
Watch Related Videos
CLE
Darren Wurz
Darren Wurz Wurz Financial Services
Five Steps To Tax Mastery for Law Firm Owners To Enhance Profitability
Watch Now
CLE
Alexia Bedat
Alexia Bedat Klaris Law PLLC
Podcasting 101 Advising Clients in Preproduction, Production, and Distribution
Watch Now