This is where Watson Webb comes in, as our expertise allows the borrower to enter the loan being aware of its key elements such as:
1. The loan amount;
2. The loan term;
3. Whether a Guarantee is being provided;
4. Interest rates; and
5. The Security that is being provided.
At the other end of the spectrum, we also attend to preparing the full suite of loan documentation for non-bank lenders and can facilitate the transaction through to registration of the security and settlement.
Watson Webb can offer a complete range of services in relation to loans, to lenders, borrowers and guarantors. Our expertise enables us to provide tailored advice depending on the circumstances, as outlined below.
Independent Legal Advice
When borrowing money, the borrower (whether it is an individual or a company), is commonly required by the lender to obtain independent legal advice on the contents of the loan documents.
The borrower will be made aware of important terms of the loan before entering into it. At this time, they can ask any questions they may have about the terms of the loan and its specifics, including the risks involved.
Once clarification on the documents is provided and any queries are answered, the borrower or their authorised representative(s) can then decide to enter into the documents and arrange their execution.
While it is important to provide independent legal advice to a borrower, it is also equally as important to advise any guarantors to the loan of their obligations. A guarantor is an individual or a company who guarantees the loan and often indemnifies the lender for any related costs and expenses in relation to recovery of the loan amount. The lender can call on the guarantor to repay the loan amount at any time should the borrower default on its obligations under the loan.
It is therefore important that the guarantor obtain legal advice independent from the advice provided to the borrower to avoid any claims of coercion into being a guarantor and to ensure that they understand what their responsibilities as guarantor are and the risks involved in providing any security in the loan.
Obtaining independent legal advice from a solicitor allows a borrower or guarantor to enter into the loan knowing theyare aware of their obligations, particularly in relation to payment, interest and default events. The process in obtaining legal advice can be straightforward and requires borrowers and/or guarantors to provide their loan documents to the solicitor and then arrange a meeting for the advice to be provided and execution to be arranged.
Drafting of Loan Documents and Settlement of Loan Facility
Watson Webb acts for lenders in the preparation of loan documents. We work with the lender to formalise their agreed term sheets into loan documentation. Following the issue of this documentation, the borrower and guarantors will obtain legal advice and then execute the documents.
Watson Webb then verifies execution of the documents and prepares for settlement. This includes registration of security and settlement of the loan amount with the borrower.
Watson Webb routinely assists lenders with mortgagee in possession litigation and other dispute issues that ariseunder loan facilities. Our litigation team is able to assist with this processi n the event a borrower defaults.
Madyson Jewell, Solicitor, and the Commercial and Litigation Team at Watson Webb are well equipped to assist with the preparation of, or advice on, loan documents, as well as with any disputes arising under a loan facility. For further information or advice tailored to your circumstances, please feel free to contact our team.
Disclaimer
This article is provided for general information purposes only and does not constitute legal advice. It is not intended to address the specific circumstances of any individual or business, and reliance should not be placed on it as a substitute for obtaining legal advice tailored to your particular situation.
You should obtain independent legal advice before entering into, varying, or relying on any loan documents.
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