Debt Investment Contracts: Purpose and Key Clauses for Effective Financing

This Skill Bit talks about Debt investment contracts that govern loans between investors and borrowers, outlining principal, repayment terms, interest rates, collateral, default conditions, remedies, and prepayment options. These contracts protect both parties and require careful negotiation. Debt investment contracts typically include clauses on principal amount, interest rates, repayment terms, collateral, events of default, representations and warranties, covenants, default remedies, governing law, confidentiality, and assignment. These clauses safeguard the lender’s interests and require careful negotiation.

Duration approx. 7 Min.

Tier: basics

A part of Essential Contract Types for Business Transactions course.