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The Case of the Broken Checklist

Intellectual property rights, such as a domain name, and trademarks and copyrights, can far outweigh an e-commerce enterprise's (and other types of businesses') tangible assets in value — and must be covered in the checklists that loan officers and outside counsel review to complete loan documentation.

40 minute readJuly 28, 2011 at 11:50 AM
By
Stanley P. Jaskiewicz
The Case of the Broken Checklist

Good lending practice depends on checklists ' in fact, a checklist of checklists.

Consider:

  • The bankers have to review all the mandatory due diligence, and analyze the prospective borrower's financials and business.
  • The asset valuations must show collateral meeting the loan-to-value ratios.
  • The lending lawyers must make sure that the loans have been approved with all required corporate formalities, and that the bank's liens have been properly created and recorded.

“Safety in lending” starts with simply making sure that everything on the list has been done,

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