Conditions Precedent In Loan Agreements

A borrower will want to ensure that the conditions precedent are well defined and objective so that he can satisfy them. As far as possible, the form of the required documents should be subject to prior agreement. If third-party reports are to be provided to the lender, the borrower should take steps to ensure that the third party is aware in advance, to the extent possible, that it must submit its report to the lender and, if requested by the lender, submit its report to the lender. Many lenders have a preferred form of formulation for addressing reports. In some cases, conditions precedent may be deleted if they are not related to the subject matter of the contract. Look at the case of an expert who commissions a ghostwriter to write a book for him. .