In the initial phase of a potential transaction, the parties will endeavour to exchange information considered confidential and sensitive in order to determine whether or not a possible agreement or relationship should be advanced. In order to control and control how this information is shared, disclosed and controlled, these parties are expected to enter into confidentiality agreements (hereafter other clauses that are sometimes included, such as non-publicity and exclusivity of confidentiality agreements, important common clauses and bargaining points in confidentiality agreements, such as the definition of “confidential information” and the “authorized purpose” of the business activity in order to reduce the risk that the borrower may not be able to the amounts owing under the loan agreement can be agreed by the parties to grant guarantees or guarantees that are part of the agreement. This may allow the lender to have the borrower`s collateral (for example. B jewellery, shares, vehicles, receivables, etc.) to get the money owed if the borrower does not default the loan. the main points to consider when reviewing a confidentiality agreement – this is divided into: some examples of additional clauses are prepayment, notification, amendments and compensation. Some loan contracts also include security agreements. A loan agreement is a contract between a borrower and a lender. It sets the terms of the loan. Loan contracts can be lengthy depending on the complexity of the loan and how the payment is made. In some cases, loans may be paid in lump sums or installments over a specified period of time. Lenders will include in the document an interest rate clause specifying the interest rate to be paid for the loan amount and when the interest will be paid.

It is very common for confidentiality agreements to be signed between the parties if no external consultant has yet been appointed. As such, the control of the internal advisor will be left to the internal council to verify and negotiate it. The purpose of this practice note is to provide advice, advice and questions to internal consultants working on credit transactions involved in the audit and negotiation of these confidentiality agreements.