Home      Login

Abstract: 

As the central contract between a lender and borrower, a credit agreement sets forth the terms and conditions of a financing arrangement. Representations, warranties, and covenants are essential elements of any credit agreement. This article highlights how these provisions are used by lenders both to get information needed to appropriately structure loans and to monitor the borrower’s ability to repay the loan and how borrowers should be careful that that these provisions are not so restrictive that they interfere with business operations.

Keywords: representations; warranties; covenants; loan documentation; borrower considerations; lender considerations

Affiliations:  1: Phillps Lytle LLP.