Are electronic signatures legally binding?

Yes. Electronic signatures generally have the same legal effect as handwritten signatures under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, attribution, and reliable record retention to support enforceability.

When is notarization required?

Notarization depends on the instrument and state. Deeds and some security instruments often require notarization or recording; other loan agreements may not. Check state recording rules and local county clerk requirements before execution.

Who must sign for a corporation?

An authorized officer or agent must sign. Obtain corporate resolutions or officer certificates evidencing authority; incorrect or unsigned authority documents can delay enforcement or perfection actions.

How do I correct an executed agreement?

Minor clerical errors are often addressed by a corrective amendment or ratification signed by all parties. Material changes require a formal amendment executed with the same authority as the original document.

Is UCC-1 filing necessary?

File a UCC-1 financing statement to perfect a security interest in most personal property collateral. Timing and jurisdiction affect priority; file promptly after execution and verify debtor name accuracy.

How should signed records be stored?

Retain signed originals or reliable electronic records with audit trails for the required retention period. Use encrypted archives with controlled access and exportable audit logs for regulatory or litigation needs.

Electronic Signature
Templates
Finance
Revolving Credit and Term Loan Agreement

Revolving Credit and Term Loan Agreement

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

What the Revolving Credit and Term Loan Agreement Is

A Revolving Credit and Term Loan Agreement is a combined financing contract that sets out a borrower's ability to draw on a revolving facility (short-term, reusable borrowing capacity) alongside a term loan (fixed principal with scheduled repayments). The document defines facility amounts, borrowing conditions, interest rates, fees, collateral and security interests, covenants, events of default, notice procedures, and maturity. It is used by lenders, borrowers, and guarantors to allocate credit risk, establish repayment mechanics and preserve remedies such as acceleration and foreclosure if covenants or payment obligations are breached.

Why a Combined Revolving and Term Loan Document Matters

This agreement consolidates short-term liquidity and long-term financing into one enforceable contract, clarifies repayment priorities, and preserves lender remedies. Properly executed, it allocates risk, supports collateral perfection, and reduces ambiguity that can delay funding or enforcement under ESIGN (15 U.S.C. ch. 96) and state UETA rules.

Who Typically Prepares and Signs This Agreement

Signatories often include authorized officers of borrower and lender, any guarantors, and in many cases counsel or closing agents to certify signature authority.

Banks and credit unions providing structured facilities across multiple tranches and maturities.
Middle-market and corporate borrowers negotiating combined working capital and term financing.
Outside counsel and in-house legal teams drafting loan covenants and collateral descriptions.

Step-by-step: Completing the Agreement

Follow this sequence to complete the document accurately and reduce rework.

01

Prepare: Assemble borrower, lender, guarantor, and collateral details.
02

Populate: Enter facility amounts, rates, fees, dates, and reporting obligations.
03

Review: Have counsel check covenants, default language, and UCC descriptions.
04

Execute: Obtain authorized signatures, notarizations, and file UCC-1 if required.

Security, Compliance, and Technical Protections

Encryption: AES-256 at rest

Transport: TLS 1.2/1.3 in transit

Audit Trail: Timestamps and IP logging

Certifications: SOC 2 Type II available

HIPAA Support: BAA required

Retention: Tamper-evident storage options

Key Risks and Penalties from Drafting Errors

Default Acceleration: Lender may accelerate debt

Repricing: Higher default interest rate

UCC Filing Gaps: Loss of perfected priority

Cross-Default: Other obligations triggered

Enforcement Costs: Attorney and foreclosure fees

Tax Withholding: Backup withholding consequences

Common Preparation Pitfalls to Avoid

Using informal or abbreviated legal names that prevent accurate UCC filings and collateral perfection; verify against formation records.
Vague collateral descriptions that fail to cover after-acquired property or specific accounts receivable classes, allowing debtor disputes.
Missing or incorrect signature authority where individuals sign without corporate resolutions, creating execution challenges in enforcement.
Incorrect effective or funding dates that misalign interest accrual, covenant testing periods, and repayment schedules.

Critical Sections to Review Carefully

These six elements determine how credit is provided, secured, and enforced under the agreement.

Facility Structure

Defines Revolving availability, borrowing base mechanics, term loan tranches, sublimits, and how drawings and repayments interact across facilities.

Interest & Fees

Specifies rate calculation, spreads, default interest, commitment and utilization fees, and fee waiver or converter provisions.

Covenants

Includes affirmative and negative covenants, financial tests, reporting obligations, and procedures for breach notices and cure periods.

Events of Default

Lists payment defaults, covenant breaches, cross-defaults, insolvency events, and lender remedies including acceleration and enforcement.

Security Interests

Describes collateral, perfection steps, UCC-1 filing requirements, priorities, and procedures for releasing or substituting collateral.

Notices & Reporting

Sets notice addresses, permitted delivery methods, periodic reporting schedules, and requirements for certified financial statements.

Configuring an Online Signing Workflow

Map signer roles, authentication, and conditional fields before sending to avoid rework and ensure enforceability.

Field	Configuration
Signer Order	Sequential or parallel signer routing
Conditional Fields	Show fields based on selections
Authentication	Email, SMS code, or KBA
Storage	Encrypted archive with audit trail

Technical Considerations for eSigning and Distribution

Select a platform that meets compliance needs (ESIGN, UETA, 21 CFR Part 11 where required), supports secure storage and audit logs, and integrates with your document management and accounting systems.

Integrations: Salesforce, NetSuite, Google Workspace
File Types: PDF, DOCX, HTML supported
Auth Methods: Email, SMS, or advanced 2FA

Typical Online Signing Flow

A standard eight-step workflow reduces friction and preserves signature evidence.

Upload: Load the agreement and attachments into the signing platform.
Place Fields: Add signature, initial, date, and conditional fields where needed.
Send: Email or generate secure signing link to each signer.
Complete: Signers authenticate, sign, and receive final signed copies with audit trail.

Key Dates and Timing Considerations

Track these dates to align funding, covenant tests, filings, and maturity obligations.

Effective Date:

Date when obligations and covenants commence, entered as MM/DD/YYYY.

Funding / Closing Date:

Date by which initial advance is made and security interests are perfected.

Covenant Testing Dates:

Quarterly or monthly test dates for financial covenants and reporting deadlines.

UCC Filing Deadline:

File UCC-1 promptly after execution to perfect security in most states.

Maturity Date:

Date when remaining term loan principal becomes due per schedule.

eSignature Vendor Pricing and Feature Snapshot

Compare starting prices and key capabilities relevant to executing and managing Revolving Credit and Term Loan Agreements; signNow is listed first for parity.

	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	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical Use Cases from Real Deployments

How organizations commonly use combined credit agreements in practice.

Optica Ventures LLC

Venture finance closing coordinated digitally for speed and convenience

3 lenders executed separate tranches online
The process reduced back-and-forth and preserved a clear audit trail for compliance and later audits.

Tech Data

Enterprise credit facility with term amortization executed across divisions

Bulk send and role-based routing used
Centralized document management ensured accurate reporting and rapid funding disbursements.

Practical Tips for Accurate, Efficient Completion

Adopt these practices to reduce execution risk and avoid delays at closing.

Use precise legal names

Confirm entity names against formation and tax records to ensure UCC perfection and correct tax reporting.

Standardize exhibits

Attach schedules for collateral, financial covenants, and payment matrices to avoid ambiguity and facilitate electronic assembly.

Verify signer authority

Obtain corporate resolutions or officer certificates showing signatory authority to avoid execution challenges.

Preserve audit trail

Capture timestamps, IPs, and identity verification records for each signer to strengthen enforceability.

Key Milestones from Negotiation to Post-Closing

Track milestone stages from signature through perfection and ongoing covenant monitoring to maintain lender protections.

01

Negotiation Complete

Finalize terms and exhibits before preparing signature-ready documents.

02

Execution / Funding

Signatures obtained and initial advances disbursed; commence interest accrual.

03

Perfection Steps

File UCC-1 or record mortgages and deliver possession of pledged collateral if required.

04

Ongoing Monitoring

Perform covenant testing, financial reporting, and periodic audits per the schedule.

Frequently Asked Questions and Troubleshooting

Common questions about execution, enforceability, authentication, and post-signature corrections for Revolving Credit and Term Loan Agreements.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures generally have the same legal effect as handwritten signatures under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted. Ensure intent, consent, attribution, and reliable record retention to support enforceability.
When is notarization required?
Notarization depends on the instrument and state. Deeds and some security instruments often require notarization or recording; other loan agreements may not. Check state recording rules and local county clerk requirements before execution.
Who must sign for a corporation?
An authorized officer or agent must sign. Obtain corporate resolutions or officer certificates evidencing authority; incorrect or unsigned authority documents can delay enforcement or perfection actions.
How do I correct an executed agreement?
Minor clerical errors are often addressed by a corrective amendment or ratification signed by all parties. Material changes require a formal amendment executed with the same authority as the original document.
Is UCC-1 filing necessary?
File a UCC-1 financing statement to perfect a security interest in most personal property collateral. Timing and jurisdiction affect priority; file promptly after execution and verify debtor name accuracy.
How should signed records be stored?
Retain signed originals or reliable electronic records with audit trails for the required retention period. Use encrypted archives with controlled access and exportable audit logs for regulatory or litigation needs.

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