Loan Party definition: Copy, customize, and use instantly
Introduction
The term "Loan Party" refers to a party involved in a loan agreement, which may include the borrower, lender, or other related parties such as guarantors. This term is critical in contracts where financial obligations and responsibilities are defined, as it helps identify the entities that are party to the loan.
Below are various examples of how "Loan Party" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Loan Party" as a borrower in a loan agreement
This definition ties "Loan Party" to the primary debtor in a lending arrangement.
"Loan Party" means any person or entity that has borrowed funds under a loan agreement and is obligated to repay the loan in accordance with the terms specified.
Definition of "Loan Party" as a guarantor of loan obligations
This definition connects "Loan Party" to entities providing guarantees.
"Loan Party" refers to any borrower or guarantor that has undertaken obligations under a loan agreement, including repayment, collateral security, or other commitments.
Definition of "Loan Party" as a grantor of security interests
This definition links "Loan Party" to collateralized obligations.
"Loan Party" means any person or entity that has pledged assets, provided security interests, or encumbered property to secure obligations under a loan agreement.
Definition of "Loan Party" as an obligor in a financing arrangement
This definition applies "Loan Party" to financial obligations.
"Loan Party" refers to any party bound by the terms of a loan agreement, whether as a borrower, guarantor, or other obligated entity.
Definition of "Loan Party" as a participant in syndicated lending
This definition ties "Loan Party" to multi-lender agreements.
"Loan Party" means any borrower or guarantor in a syndicated loan facility, responsible for meeting obligations under a shared financing structure.
Definition of "Loan Party" as a party subject to lender covenants
This definition connects "Loan Party" to compliance with loan conditions.
"Loan Party" refers to any entity that must adhere to lender-imposed financial and operational covenants under a loan agreement.
Definition of "Loan Party" as an entity bound by repayment terms
This definition links "Loan Party" to structured repayment schedules.
"Loan Party" means any borrower or guarantor responsible for making scheduled payments as stipulated in a loan contract.
Definition of "Loan Party" as an entity subject to lender remedies
This definition applies "Loan Party" to potential enforcement actions.
"Loan Party" refers to any person or entity against whom lenders may exercise remedies in case of loan default, including foreclosure or asset seizure.
Definition of "Loan Party" as a debtor with financial reporting obligations
This definition ties "Loan Party" to disclosure requirements.
"Loan Party" means any borrower or guarantor required to provide financial statements, compliance certificates, or other disclosures under a loan agreement.
Definition of "Loan Party" as an entity providing cross-guarantees
This definition connects "Loan Party" to intercompany obligations.
"Loan Party" refers to any borrower or guarantor that has entered into cross-guarantee arrangements with affiliated entities under a financing structure.
Definition of "Loan Party" as a participant in a revolving credit facility
This definition links "Loan Party" to revolving loan structures.
"Loan Party" means any borrower entitled to draw funds under a revolving credit agreement and responsible for repayment.
Definition of "Loan Party" as an entity subject to lender rights
This definition applies "Loan Party" to lender enforcement mechanisms.
"Loan Party" refers to any entity against whom the lender holds rights, including acceleration of obligations, enforcement of liens, or collection actions.
Definition of "Loan Party" as a pledgor of collateral
This definition ties "Loan Party" to secured obligations.
"Loan Party" means any borrower or guarantor that has pledged collateral to secure repayment obligations under a loan agreement.
Definition of "Loan Party" as a corporate borrower
This definition connects "Loan Party" to commercial lending.
"Loan Party" refers to any corporate entity that has executed a loan agreement, either as a direct borrower or a co-borrower.
Definition of "Loan Party" as an entity bound by material adverse change clauses
This definition links "Loan Party" to risk assessment provisions.
"Loan Party" means any person or entity subject to material adverse change provisions affecting financial condition, operations, or prospects.
Definition of "Loan Party" as an entity liable under a credit agreement
This definition applies "Loan Party" to credit facility obligations.
"Loan Party" refers to any borrower or guarantor liable for repayment and compliance with the terms of a credit agreement.
Definition of "Loan Party" as an entity subject to negative covenants
This definition ties "Loan Party" to restrictions on activities.
"Loan Party" means any person or entity that is contractually prohibited from engaging in specific activities under a loan agreement, such as incurring additional debt.
Definition of "Loan Party" as an entity subject to event of default provisions
This definition connects "Loan Party" to default conditions.
"Loan Party" refers to any borrower or guarantor whose non-compliance with loan terms may trigger an event of default under a financing arrangement.
Definition of "Loan Party" as an entity with permitted investment restrictions
This definition links "Loan Party" to financial limitations.
"Loan Party" means any borrower or guarantor subject to restrictions on making investments, loans, or advances under a loan agreement.
Definition of "Loan Party" as a joint and several borrower
This definition applies "Loan Party" to multiple obligated entities.
"Loan Party" refers to any borrower that shares joint and several liability with other borrowers under a financing arrangement.
Definition of "Loan Party" as a primary obligor under a debt facility
This definition ties "Loan Party" to principal debtor status.
"Loan Party" means any person or entity that is primarily responsible for repaying indebtedness under a credit facility.
Definition of "Loan Party" as a subordinated debt obligor
This definition connects "Loan Party" to junior debt obligations.
"Loan Party" refers to any borrower or guarantor whose obligations are subordinated to senior lenders under a loan agreement.
Definition of "Loan Party" as a party to intercreditor agreements
This definition links "Loan Party" to priority lending structures.
"Loan Party" means any borrower or guarantor subject to the terms of an intercreditor agreement governing the rights of multiple lenders.
Definition of "Loan Party" as an entity bound by debt service coverage ratios
This definition applies "Loan Party" to financial performance thresholds.
"Loan Party" refers to any borrower or guarantor required to maintain specified debt service coverage ratios under a financing arrangement.
Definition of "Loan Party" as an entity obligated under an acquisition financing agreement
This definition ties "Loan Party" to M&A-related borrowing.
"Loan Party" means any borrower or guarantor that has incurred debt in connection with an acquisition financing arrangement.
Definition of "Loan Party" as an entity providing parent guarantees
This definition connects "Loan Party" to upstream guarantees.
"Loan Party" refers to any entity that provides a parent guarantee to secure the obligations of a subsidiary borrower under a credit facility.
Definition of "Loan Party" as a co-maker of debt instruments
This definition links "Loan Party" to jointly executed promissory notes.
"Loan Party" means any person or entity that has co-executed a promissory note or debt instrument with joint and several liability.
Definition of "Loan Party" as a Borrower with Specific Loan Terms
This definition links "Loan Party" to a borrower with specific loan terms.
"Loan Party" means a borrower subject to specific loan terms, including repayment schedules, interest rates, and collateral requirements.
Definition of "Loan Party" as an Individual Borrower
This definition applies "Loan Party" to an individual borrower.
"Loan Party" refers to an individual who is the borrower under the loan agreement, personally responsible for the repayment of the loan.
Definition of "Loan Party" as a Loan Participant
This definition connects "Loan Party" to a loan participant.
"Loan Party" means any participant in the loan agreement, including the borrower, lender, or any other party involved in the terms and execution of the loan.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.