The "conditions precedent" in a loan agreement means
A)that a borrower must repay the loan before the due date
B)that a borrower must satisfy certain requirements before the loan is funded
C)that a bank can waive certain loan stipulations when the borrower has not defaulted
D)both a and b
E)both a and c

Question

Quizplus · Accepted Answer

"Conditions precedent" refers to the conditions that must be met before the loan is funded. This includes requirements such as providing collateral, obtaining insurance, or meeting certain financial ratios. It does not refer to the repayment of the loan or the ability of the bank to waive certain stipulations.

The "Conditions Precedent" in a Loan Agreement Means