Is an electronic signature legally valid?

Yes. Electronic signatures are generally legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention criteria are met.

Do borrowers always need to be notarized?

Not necessarily. Notarization depends on state practice and document purpose. If the form creates or transfers an interest in real property, notarization is often required; otherwise it is usually optional.

Can I use remote online notarization?

Many states permit RON with identity-proofing, audio-video recording, and retention requirements; verify the state notary commission rules before relying on RON.

What happens if the TIN is wrong?

An incorrect TIN can trigger backup withholding and IRS penalties; obtain a correct W-9 or equivalent and verify taxpayer information before funding.

Who must sign on behalf of an entity?

An authorized officer or agent with delegated authority must sign. Document delegation in approvals and retain evidence of authority to bind the entity.

How long should I keep the executed form?

Follow the retention schedule: keep for the active term plus recommended post-termination period; federal requirements (e.g., IRC §6501(a), 45 CFR §164.530(j)) set minimums for tax and HIPAA contexts.

Borrowing Policy Form

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Borrowing Policy Form

Lender Name: Borrower Name:

WHEREAS

WHEREAS, Lender is the owner or authorized custodian of certain assets, equipment, or funds identified herein and is willing to permit Borrower temporary use or access to such assets subject to the terms of this Policy;

WHEREAS, Borrower desires to borrow the asset(s) described in this form for a specified business purpose and agrees to comply with the operation, return, maintenance, insurance and payment obligations set forth below; and

WHEREAS, the parties intend that this Borrowing Policy Form establish the rights, duties, and administrative procedures governing all borrowings under this authorization.

SCOPE OF BORROWING

Asset Summary

Asset Type: Serial/ID: Quantity:

Purpose of Borrowing

BORROWING PERIOD

Start Date: End Date: Renewals permitted: Yes No

Return Condition & Inspection Requirements

PAYMENT TERMS

Borrowing Fee Amount: Security/Deposit Amount:

Payment Schedule

Late Payment Fee: % of overdue amount

TERM AND TERMINATION

This authorization commences on and, unless earlier terminated, expires on .

Either party may terminate this borrowing authorization for cause upon written notice of days to the other party, specifying the grounds for termination. Upon termination Borrower shall promptly return all assets and satisfy outstanding financial obligations.

Early Termination Conditions

CONFIDENTIALITY AND USE RESTRICTIONS

Borrower shall use borrowed asset(s) solely for the Purpose of Borrowing set forth above and shall not disclose or permit access to any Confidential Information contained in or associated with the asset(s) except as necessary to perform the authorized purpose. Confidential Information includes but is not limited to proprietary data, personal data, trade secrets, and any material designated confidential by Lender.

Acknowledgement of Confidentiality: Borrower acknowledges and agrees to be bound by the confidentiality obligations set forth herein.

INSURANCE, INDEMNITY, AND LIABILITY

Borrower shall maintain insurance coverage adequate to insure against loss, theft, damage, and third-party liability related to the borrowed asset(s) while in Borrower’s possession. Borrower agrees to indemnify, defend and hold harmless Lender from and against any claims, liabilities, losses, costs or expenses (including reasonable attorneys' fees) arising out of Borrower’s use, possession, transportation or return of the asset(s), except to the extent caused by Lender’s gross negligence or willful misconduct.

COMPLIANCE; RECORDS

Borrower shall comply with all applicable laws, regulations and internal policies in its use of the asset(s). Borrower shall maintain accurate records of use, maintenance and any incidents involving the asset(s) and shall permit Lender or its designee to inspect such records and the asset(s) upon reasonable notice.

GOVERNING LAW

This Borrowing Policy Form shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

ENTIRE AGREEMENT

This Policy, together with any schedules, attachments, and written approvals executed by the parties, constitutes the entire agreement between Lender and Borrower with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements between the parties concerning such subject matter. Any amendment must be in writing and executed by both parties.

AUTHORIZATIONS, CONTACTS & RECORDS

Authorized Approver (Lender) Borrower Point of Contact Recordkeeper Notes (internal use)

Lender Printed Name:

By:

Date:

Borrower Printed Name:

By:

Date:

What the Borrowing Policy Form Is and When It’s Used

A Borrowing Policy Form documents the terms, authorizations, and controls governing a loan, credit line, or advance between an organization and an individual or affiliate. It captures borrower identity, loan amount, repayment schedule, collateral, approvals, and any covenants or restrictions. Organizations use it to ensure consistent underwriting, internal approvals, and auditability. Where allowed, the form may be executed electronically under U.S. e-signature law to streamline approvals and preserve an auditable signing record.

Why a Clear Borrowing Policy Form Matters

A standardized Borrowing Policy Form reduces legal ambiguity, documents borrower obligations, and creates an evidence trail for approvals and funding decisions. Clear terms limit disputes, support internal controls, and make regulatory reviews and audits easier.

Who Prepares and Relies on this Form

Teams that prepare and rely on a Borrowing Policy Form include lending officers, credit committees, and finance or compliance staff responsible for approval and recordkeeping.

Lenders and credit officers: document underwriting, collateral, and repayment terms for internal approval.
Borrowers and guarantors: confirm identity, consent to terms, and acknowledge obligations under the loan.
Legal and compliance teams: verify regulatory adherence, retention rules, and dispute-resolution provisions.

Use this form to centralize approvals and make borrowing decisions reproducible and defensible during audits or disputes.

Core Sections to Include in a Professional Borrowing Policy Form

A complete Borrowing Policy Form combines identification, economic terms, security, approvals, event definitions, and signature controls to create an enforceable record.

Borrower Details

Full legal name, entity type, taxpayer identification number, and primary contact information to ensure correct identity verification and tax reporting.

Loan Terms

Principal amount, interest rate (fixed or variable), payment frequency, maturity date, and amortization schedule that defines financial obligations precisely.

Collateral and Security

Detailed description of collateral, perfection steps required, and remedies on default to protect creditor interests and guide enforcement.

Repayment and Covenants

Payment application rules, prepayment terms, affirmative and negative covenants, and events of default that affect borrower rights.

Approvals and Authority

Internal approval blocks, delegated authority thresholds, and signature roles to document who can bind the organization and under what limits.

Execution and Notice

Signature blocks, effective date, notice addresses, and a record of attachments and supporting documents that complete the agreement.

Step-by-Step: Completing and Executing the Form

Follow these sequential steps to prepare, review, and finalize the Borrowing Policy Form for execution.

01

Gather Documents: Collect IDs, formation docs, and financial statements.
02

Complete Fields: Enter data consistently and in required formats.
03

Internal Review: Obtain credit and legal approvals per delegations.
04

Sign and Distribute: Execute with authorized signatures and issue copies.

Typical Workflow from Draft to Signed Record

This condensed flow shows how the form moves from draft to a retained, signed record.

Create: Draft with required fields and attachments.
Prepare: Add signature, initial, and approval fields.
Send: Route to signers per role order.
Complete: Capture signatures and store the audit trail.

How to Configure an Electronic Workflow for the Form

Standard workflow settings help enforce signer order, authentication, and record retention for electronic execution.

Field	Configuration
Authentication	Email plus optional SMS code
Signer Order	Sequential or parallel routing
Templates	Save reusable form templates
Notifications	Email reminders and completion alerts

Technical Requirements for Digital Completion and eSubmission

Confirm file format, signer authentication, and integration needs before enabling electronic execution of the form.

File Formats: PDF, DOCX supported
Authentication: Email, SMS, or KBA
Integrations: CRM and storage links

Ensure the e-signature provider supports required integrations (for example Salesforce, NetSuite, or Microsoft 365), complies with ESIGN/UETA, and can produce an audit trail and tamper-evident signed file for retention.

Common Timelines and When Each Action Should Occur

Align form completion with approval windows and funding dates to avoid delays in disbursement and reporting.

Application Submission:

Submit borrower materials at least 5–10 business days before decision.

Internal Review:

Allow 3–7 business days for credit and legal review.

Approval Validity:

Approvals often expire after 30–90 days unless extended.

Funding Date:

Schedule funding once executed documents and conditions are satisfied.

Record Retention:

Retain executed copy per retention schedule and legal requirements.

Common Errors to Avoid When Preparing the Form

Using informal or inconsistent borrower names that do not match formation documents, which can prevent proper perfection of security interests or tax reporting.
Leaving repayment terms vague or omitting interest calculation method, creating disputes over amounts due and payment application.
Failing to capture or attach collateral descriptions and perfection steps, which undermines secured creditor remedies after default.
Not recording internal approval authority or signer delegation, exposing the organization to claims a signature exceeded authority.

Consequences of an Incorrect or Incomplete Form

Invalid Signature: May render the agreement unenforceable.

Tax Exposure: Incorrect TINs can trigger backup withholding.

Security Loss: Improper perfection weakens collateral rights.

Regulatory Risk: Noncompliance can invite fines or enforcement.

Funding Delay: Missing approvals can stall disbursement.

Privacy Breach: Improper handling of PII can create liability.

Security and Compliance Controls to Include

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest

Audit Trail: Timestamp, IP, and action history

ESIGN/UETA: Meets electronic signature legal tests

HIPAA BAA: BAA required for PHI-bearing documents

21 CFR 11: Support for FDA-regulated records

Access Controls: Role-based access and SSO/SAML

eSignature Pricing and Feature Comparison for Executing the Borrowing Policy Form

Basic pricing and feature differences among common e-signature providers to inform platform selection for executing borrowing forms.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About the Borrowing Policy Form

Answers to common questions when preparing, signing, or storing borrowing policy records.

Need help? Contact support

Is an electronic signature legally valid?
Yes. Electronic signatures are generally legally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention criteria are met.
Do borrowers always need to be notarized?
Not necessarily. Notarization depends on state practice and document purpose. If the form creates or transfers an interest in real property, notarization is often required; otherwise it is usually optional.
Can I use remote online notarization?
Many states permit RON with identity-proofing, audio-video recording, and retention requirements; verify the state notary commission rules before relying on RON.
What happens if the TIN is wrong?
An incorrect TIN can trigger backup withholding and IRS penalties; obtain a correct W-9 or equivalent and verify taxpayer information before funding.
Who must sign on behalf of an entity?
An authorized officer or agent with delegated authority must sign. Document delegation in approvals and retain evidence of authority to bind the entity.
How long should I keep the executed form?
Follow the retention schedule: keep for the active term plus recommended post-termination period; federal requirements (e.g., IRC §6501(a), 45 CFR §164.530(j)) set minimums for tax and HIPAA contexts.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now