National Association of Federally-Insured Credit Unions (NAFCU)
What is the National Association of Federally-Insured Credit Unions (NAFCU)? The National Association of Federally-Insured Credit Unions (NAFCU) is a membership-based trade organization for credit unions insured by the federal government. In an overall effort to help the credit union industry grow, NAFCU works with its member credit unions, acting as a representative and assistant,...
Intercreditor Agreement
What is an Intercreditor Agreement? An Intercreditor Agreement documents the rights and obligations of two or more creditors when working with a shared borrower; these include priority of claims on loans and collateral. By coordinating their mutual (and competing) interests in advance, the Agreement governs their relationship with each other and the borrower, providing legal...
Loan Structure
What is Loan Structure? Loan structure refers to the different characteristics that a lender can choose from when extending credit to a borrower. Loan structure is also often referred to as credit structure. Lenders always want to offer their borrower credit that is appropriate based upon the nature of the credit request as well as...
Financial vs Non-Financial Covenants
What are Financial vs Non-Financial Covenants? Comparing financial vs non-financial covenants in a loan agreement helps us to better understand how agreements are formulated and the way they are executed across various industries. Covenants are a type of promise that exists in contract law and are a part of many borrowing agreements throughout corporate and...
Bail-In Clause
What is a Bail-in Clause? A bail-In clause is used in times of bankruptcy or financial distress and forces the borrower’s creditors to write-off some of their debt in order to ease the financial burden on the borrowing institution. The ultimate goal of a bail-in clause is to keep the institution afloat and operating, even...
