Arranging execution of the finance documents in a loan transaction
Arranging execution of the finance documents in a loan transaction

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Arranging execution of the finance documents in a loan transaction
  • Signing/completion meetings
  • Practical issues and common problems
  • Minimising the chances of things going wrong
  • Virtual execution
  • Use of electronic signatures

The lender's lawyers usually co-ordinate the execution of the finance documents either through a physical signing meeting or a virtual signing. The borrower's lawyers might be required to assist with the execution of the finance documents (or any other transaction documents requiring execution) by their clients.

Signing/completion meetings

In many transactions, the documents will be executed at a signing or completion meeting. The lender's lawyers will co-ordinate the process.

Printing off the execution copies

The lender's lawyers will be responsible for co-ordinating the execution versions of the finance documents and making them available to all parties for execution. It is important to check that:

  1. all of the documents which are to be executed are printed off

  2. the final agreed form of each document is printed out—it can be helpful to check the individual identification number and version number of each document to make sure that the correct version has been located

  3. enough copies of each document are printed—it is usual to print one copy per party but it is important to bear in mind whether any extra original copies are required for registration purposes

Execution

Different formalities apply to the execution of documents depending on:

  1. the nature of the document being executed, and

  2. the entity executing the document

The lender's lawyers will check that the documents have been executed in the appropriate form