In one sentence
The attorney representing the lender, drafting and negotiating loan documents and confirming conditions to funding.
The longer version
Lender's counsel drafts the loan documents, negotiates against borrower's counsel, reviews title and survey, and opines on whether conditions are satisfied. Counsel's judgment gates funding on the legal side.
Documentation and diligence run in parallel, and their collisions, a survey exception needing a document change, land on counsel's desk, making counsel a hub of closing coordination.
Common questions
- What does lender's counsel do in a commercial loan?
- Drafts and negotiates the loan documents, reviews title, survey and diligence, confirms conditions to funding, and issues closing instructions to the title company.
- Who pays lender's counsel?
- In commercial lending the borrower usually pays the lender's legal fees as a closing cost, under the term sheet or commitment.
- What is the difference between lender's counsel and borrower's counsel?
- Lender's counsel protects the lender's interests and drafts the documents. Borrower's counsel negotiates them for the borrower and delivers entity, authority and opinion items.
Keep reading
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing processThe five stages from term sheet to funded.
- Commercial loan softwareWhere this sits in the lending stack.