Does Your Attorney Get In The Way When Reviewing Bank Loan Documents?

bank loan agreements

The short answer is, “No”.

A few years ago, when I was engaged in a bank refinancing for the business that I then owned, I asked the loan officer how long it would take to complete the process.

His reply was, “It depends on your attorney”. He went on to explain that the bank loan documents were very standard, plain-Jane contracts. They were perfectly serviceable. But, you know those attorneys…once you ask them to look at a legal contract, they have to justify their worth. So, they quibble over inconsequential things and drag the process out.

While the loan officer couldn’t come right out and say it, he was implying that a legal review was a waste of my time and money. The documents were perfectly acceptable and those darned lawyers just get in the way. The subtext of his comment was a suggestion for me to just skip the legal review.

The funny thing is that when the bank delivered the loan docs, they contained a couple lousy (from the borrower’s perspective) things that needed to be stricken from the contract.

So, do lawyers just get in the way? Sometimes they do. I have seen negotiations where the two attorneys were trying to show who was smarter by arguing over very minor stuff. But, I would never skip the legal review of a loan agreement. It is a matter of managing your attorney. Look at this post if you want to know how to do that.