Modification Of Loan Agreement for the United States

Modification Of Loan Agreement Template for United States

A legally binding document governed by United States federal and state laws that amends the terms and conditions of an existing loan agreement between a lender and borrower. This document outlines specific modifications to the original loan terms, which may include changes to interest rates, payment schedules, loan duration, or security arrangements, while maintaining the validity of unmodified terms from the original agreement. The document must comply with federal regulations including the Truth in Lending Act and state-specific lending laws, ensuring all modifications are clearly disclosed and properly executed by all parties.

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What is a Modification Of Loan Agreement?

The Modification Of Loan Agreement is a crucial document used when parties to an existing loan agreement need to alter specific terms without creating an entirely new agreement. This document is commonly utilized during financial restructuring, when borrowers face changed circumstances, or when market conditions necessitate loan term adjustments. Under U.S. jurisdiction, it must comply with federal regulations such as TILA and RESPA, as well as state-specific lending laws. The modification agreement typically includes details of the original loan, specific terms being modified, confirmation of unchanged terms, and any new conditions or requirements. It's particularly relevant in scenarios involving commercial loans, mortgages, or business financing where flexibility in loan terms may be necessary to accommodate changing business conditions or financial circumstances.

What sections should be included in a Modification Of Loan Agreement?

1. Parties: Identification of all parties to the modification agreement, including the original lender, borrower, and any new parties

2. Background: References to the original loan agreement, reasons for modification, and current status of the loan

3. Definitions: Definitions of terms used in the modification agreement, including references to definitions from the original agreement that remain applicable

4. Modification of Terms: Specific details of what terms are being modified from the original agreement

5. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain in full force and effect

6. Representations and Warranties: Updated representations and warranties from the borrower regarding their current financial situation and ability to perform

7. Conditions Precedent: Any conditions that must be satisfied before the modification becomes effective

8. Effective Date: Clear statement of when the modifications take effect

9. Execution: Signature blocks and execution requirements for all parties

What sections are optional to include in a Modification Of Loan Agreement?

1. Additional Security: Include when new collateral or security is being added as part of the modification

2. Release Provisions: Include when any existing security or guarantees are being released

3. Fee Provisions: Include when there are fees associated with the modification

4. Tax Provisions: Include when the modification has specific tax implications that need to be addressed

5. Guarantor Consent: Include when there are existing guarantors who need to consent to the modification

6. Cross-Default Provisions: Include when there are other related loan agreements that could be affected by this modification

7. Insurance Requirements: Include when insurance requirements are being modified or new insurance is required

What schedules should be included in a Modification Of Loan Agreement?

1. Schedule of Modified Payment Terms: Detailed breakdown of new payment amounts, dates, and schedule

2. Schedule of Modified Interest Calculations: If applicable, detailed explanation of new interest rates and calculation methods

3. Schedule of Additional Security: Details of any new security or collateral being provided

4. Schedule of Outstanding Balance: Current loan balance and payment history as of modification date

5. Appendix A - Form of Notice: Standard forms for any notices required under the modified agreement

6. Appendix B - Compliance Certificate: Updated form of compliance certificate if required under the modified terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Amendment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate

Commercial Lending

Consumer Finance

Agriculture

Manufacturing

Retail

Healthcare

Technology

Construction

Small Business

Education

Relevant Teams

Legal

Finance

Treasury

Credit and Risk

Compliance

Commercial Banking

Loan Operations

Corporate Banking

Documentation

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Loan Officer

Credit Manager

Legal Counsel

Corporate Attorney

Risk Manager

Treasury Manager

Financial Controller

Compliance Officer

Banking Relationship Manager

Debt Restructuring Specialist

Commercial Banking Officer

Portfolio Manager

Credit Analyst

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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