Legal Question in Banking Law in Pennsylvania

Loan Agreements

If we put the conditions in a Regular Business Loan Agreement regarding Borrowing base certificate requirements and the limitations ot eligible receivables etc. is this suffice when the primary course of repayment is depended on the business operations or must an Asset Based Agreement be used? What does the Asset Based Agreement cover that the Regular Business Loan Agreement does not cover (if the conditions are listed within). Thank you.


Asked on 3/14/06, 8:53 am

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Loan Agreements

It depends on what is written in the particular agreements. Generally the title to a document means nothing. In this case my guess is that you are comparing the titles of some proprietary form documents where the titles help the lendor identify their own form.

So to answer your question there may be little or no difference or there may be a substantial difference. You need to read and compare the forms and live up to the agreement that you have signed.

A competent attorney can help you with your contract issues, and save you money by ,itigating risks and avoiding costly mistakes. I would be happy to discuss your legal issues. You can contact me to arrange an appointment.

Regards,

Roger Traversa

[email protected]

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Answered on 3/14/06, 9:47 am


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