Bank Commitment Letter
National Bank of
Attn. , President
In response to your request for a loan of to acquire, renovate, and equip the facilities at in ,
we are pleased to offer Corporation the following:
Terms: The rate of interest shall be a fixed rate of for years. Payments of shall be due and
payable on or before the first day of each and every month for consecutive months beginning on the first day
of the month next succeeding the closing.
Fees: The bank shall charge and collect at the time of closing a closing fee of percent of the principal
amount of the loan. This fee shall be in addition to any interest charged on the loan.
Collateral: This loan shall be secured by a first mortgage lien in the amount of on the premises acquired
and renovated at Avenue. In addition, the bank shall receive security in the form of a security interest
(UCC-1 Financing Statement) in the amount of on all personal property located at Avenue. Neither
the mortgage nor the security interest shall be subject to any prior liens. In addition, the bank shall receive a second
mortgage lien on the real and personal property of the residence at in , of which and are
Guarantee: An unconditional personal guarantee shall be required from and .
Conditions: The company shall obtain subordinated mortgage financing commitments in the amount of
from the Economic Development Commission. The financing shall be for a period of years.
This commitment represents the maximum loan amount the bank will provide for this project.
In addition to the above commitment, the bank is willing to advance interim financing in the amount not to
exceed at a rate of for months provided the borrower submits satisfactory evidence and
assignments of commitment from subordinated mortgage lenders totalling .
This commitment shall remain in effect to [Date], if this commitment is accepted by the borrower by signing and
returning to the bank a copy of this letter by [Date]. In the event that there is any material adverse change in the
company's financial condition or obligations prior to the closing, the bank may, at its sole and complete discretion,
terminate this commitment.
Senior Credit Administrator
National Bank of
electronic form 2005