Why Does GoDocs provide an Exhibit B "Certificate of Compliance" with the Loan Agreement?

A compliance certificate template is provided as Exhibit B of the Loan Agreement when any Financial Covenants are selected within the loan order. The provided certificate can be used, at Lender’s discretion, with or instead of any other certificate, form or process the Lender wants to use to substantiate that the party(ies) meet their ongoing covenant.

 

We understand every compliance-event will require Borrower or Guarantor proof of compliance, at lender discretion. The included Exhibit B is designed to be acceptable until such replacement is provided and communicated to such party; such requirement may change over the life of the loan as well. This prevents the party(ies) from claiming ignorance or lack of communication as a possible reason for missing a compliance requirement or deadline.

 

The compliance certificate is only intended to be executed, initially, at closing if there is a financial covenant applicable at closing.

 

GoDocs, at this time, cannot replace the exhibit B on a customer-request basis. But such alternative can be separately provided or communicated to the party(ies) as a servicing matter by the lender.