Consumer & Commercial Loan Documentation 3 Day Program

If you are not a KBA member, please contact Paula Cross at pcross@kybanks.com or 502-736-1276 for the possibility of attending at a non-member rate.
Should you need overnight accommodations we suggest: Holiday Inn Express, 1520 Alliant Avenue, Louisville (502) 240-0035; be sure to mention you are attending a KBA program to receive our rate. The special rate for KBA will expire 4/01/24.

PLEASE NOTE LOCATION: Kentucky Society of CPAs, 1735 Alliant Avenue, Louisville.

Seminar 9 a.m. - 4 p.m. local time. Registration and breakfast begins after 8:30 a.m.

Consumer Loan Documentation

After the decision to make a consumer loan has been made, the next step is the documentation and closing process. Loan Documentation is critical now due to the increasing amounts of consumer debt nationwide due to individuals relying upon credit to meet normal living expenses. The problem is many consumers are still financially weak. This part of the lending process is essential in order to avoid loan losses due to poor documentation. Many community banks assign this important responsibility to Loan Officers and Loan Administrators. If not performed properly, poor documentation can cause loans to be adversely classified even if the underlying credit is sound or if the loan is performing as agreed.

The purpose of the first day is to provide participants with a good understanding of the Consumer Loan Documentation process. Participants will be exposed to the five steps in the loan documentation process, which include:
    1. Identifying the Borrower

    2. Identifying and Documenting the Collateral

    3. Evidencing the Debt

    4. Attaching the Collateral

    5. Perfecting the Security Interest


Each of the five steps requires certain documents to accomplish their respective purpose. The primary documents to be presented are as follows:
    1. The Application

    2. Documents required to identity the borrower Under the U. S. Patriot Act

    3. Resolution of Authority

    4. Regulation B Documents including the Application, Adverse Action Documentation and Appraisal Notification Requirements, Notice to Co-signer

    5. Engagement Letters, Appraisals and Evaluations

    6. Consumer Promissory Note

    7. Consumer Security Agreement

    8. Guaranty Agreement

    9. Various Compliance Documents relating to Real Estate Loans

    10. Other documents required to support the five steps in the documentation process


The session will address the major compliance issues that relate to the lending function including Regulation B and Z and the documents required to be in compliance with these regulations.

Course Objectives

After completing this session, the participant will:
  • Recognize the documents required to complete the five steps in the documentation process
  • Know how to properly classify and value collateral
  • Have a good working knowledge of the purpose of each loan document
  • Be able to provide a broad overview of the loan documents' provisions
  • Know the rules of attaching collateral
  • Know the rules of perfecting the security interest


Commercial Loan Documentation

After the decision to make a commercial loan has been made, the next step is the documentation and closing process. This part of the lending process is essential to avoid loan losses due to poor documentation. Many community banks assign this important responsibility to Loan Officers and Loan Administrators. If not performed properly, poor documentation can cause loans to be adversely classified even if the underlying credit is sound or if the loan is performing as agreed.

The purpose of day two is to provide participants with a good understanding of the loan documentation process. Participants will be exposed to the five steps in the loan documentation process, which include:
    1. Identifying the Borrower

    2. Identifying and Documenting the Collateral

    3. Evidencing the Debt

    4. Attaching the Collateral

    5. Perfecting the Security Interest



Each of the five steps requires certain documents to accomplish their respective purpose. The participant will develop an understanding of each of these documents and know when to use them.

The primary documents to be presented are as follows:
    A. Documents Required to Identify Borrower and Establish Authority

    1. Loan Application

    2. Financial Statements

    3. Credit Memorandum

    4. Typical business structures (Corporations, Limited Liability Companies)

    5. Corporate and Partnership Resolutions

    6. Opinion Letters

    7. Certificates of Good Standing

    8. Articles of Incorporation /Articles of Organization/Partnership Agreement

    9. By-Laws

    B. Review Legal Definition of Collateral Types to Avoid Improper Classification of Collateral

    1. Review of Collateral Definitions

    2. Review of Collateral Valuation Documents

    C. Documents to Evidence the Debt

    1. Promissory Note

    2. Loan Agreements

    3. Proposal Letters

    4. Commitment Letters

    D. Documents to Attached and Support Various Types of Collateral

    1. Security Agreement / Deed to Secure Debt

    2. Hypothecation Agreement

    3. Guaranty Agreement

    4. Subordination Agreement

    5. Landlord's Waiver

    6. Insurance Policies

    E. Documents Required to Perfect the Security Interest

    1. Review of Revise Article 9 of the Uniform Commercial Code

    2. Completing and Filing Uniform Commercial Code Financing Statements

    3. Perfection by Control

    4. Perfection by Possession

    5. Perfection of Attachment

    6. Perfection of Real Estate

    F. Documents Required for Specialized Lending

    1. Loan Participation Documents

    2. Documents required for Construction Loans.



Course Objectives

After completing this course, the participant will:
  • Recognize the documents required to complete the five steps in the documentation process.
  • Have a good working knowledge of the purpose of each document.
  • Be able to provide a broad overview and meaning of each loan documents' provisions.
  • Know the rules of perfecting the security interest under the rules of Article 9 of the Uniform Commercial Code and Non-Article 9 rules
Event Brochure         
When
4/8/2024 - 4/10/2024
Where
Kentucky Society of CPAs 1735 Alliant Avenue Louisville, KY
Registration
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About the Speaker(s)

SpeakerBlock
Mr. Jeffery Johnson
Mr. Jeffery Johnson
Bankers Insight Group, LLC

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender for SouthTrust Bank (a large Southeastern Regional Bank) and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta (Community Bank). Most of his career has been spent in Credit Administration, Lending (Commercial, Consumer and Real Estate), Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individuals, Middle Market Companies, Small Businesses, Real Estate and Non-Profit Organizations and managed several loan officers with portfolio management responsibilities. Mr. Johnson is now a training professional in the banking industry by leading various seminars covering important topics relating to issues in banking. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual banks nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.
Mr. Jeffery Johnson
Mr. Jeffery Johnson
Bankers Insight Group, LLC
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender for SouthTrust Bank (a large Southeastern Regional Bank) and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta (Community Bank). Most of his career has been spent in Credit Administration, Lending (Commercial, Consumer and Real Estate), Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individuals, Middle Market Companies, Small Businesses, Real Estate and Non-Profit Organizations and managed several loan officers with portfolio management responsibilities. Mr. Johnson is now a training professional in the banking industry by leading various seminars covering important topics relating to issues in banking. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual banks nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001.JOHNSON, JEFFERY
Education Alliance Cancellation Policy
 Substitutions are always welcome and encouraged. All cancellations and substitutions request must be submitted in writing prior to the event.

KBA Seminar Registrations can cancel 30 days prior to the event date and receive a full refund. Cancellations received between 29 days and 10 days prior to the event will be charged a $50 processing fee. There will be no refund for cancellations received less than 10 days prior to the event.

KBA Schools Applicants can withdraw from a KBA School 10 days prior to the 1st day of the school for a refund minus a $150 cancellation fee. There is no refund if an applicant withdraws after the deadline or if applicant fails to attend the school, with the exception of extenuating circumstances. Due to commitments and expenses we cannot reverse, such as: handouts, food, beverages, room rentals, speaker fees, etc.; even extenuating circumstances will require partial refunds because of these expenses.