Existing Lender's Reference Clause Samples
The Existing Lender's Reference clause requires the current lender to provide information or confirmation regarding the borrower's financial standing or performance under an existing loan. Typically, this clause is invoked when a borrower seeks new financing or refinancing, and the prospective lender requests a reference from the existing lender to assess the borrower's creditworthiness or compliance with loan terms. By facilitating the exchange of relevant information between lenders, this clause helps ensure transparency and informed decision-making in lending transactions.
Existing Lender's Reference. In some cases, the Seller may also seek a reference from any existing and/or previous lender. Any reference must satisfy the Seller that the account has been properly conducted and that no history of material arrears exists.