| name | loan-modification-agreement |
| title | Loan Modification Agreement |
| description | Drafts a U.S. commercial Loan Modification Agreement amending existing loan terms (interest rates, payment schedules, maturity dates, covenants) while preserving enforceability of original loan documents, security interests, and guarantees without novation. Use when restructuring commercial loans, extending maturities, modifying covenants, formalizing forbearance, or documenting workout arrangements. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/loan-modification-agreement |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | finance |
| language | en |
Loan Modification Agreement
Amends existing commercial loan terms while preserving all original security interests, guarantees, and document enforceability without novation.
Prerequisites
Gather before drafting:
- Original loan agreement (execution date, parties, principal amount)
- All related loan documents: promissory notes, security agreements, mortgages/deeds of trust (with recording info), guarantees, subordination/intercreditor agreements
- Current outstanding principal balance
- Modification trigger: borrower request, workout, or mutual restructuring
- Confirmed corporate authority and approvals for all parties
- Any defaults to be waived (specifically identified)
Quick Start
- Collect all original loan documents and current balance
- Identify specific terms being modified
- Draft modification following the document structure below
- Confirm no-novation language throughout
- Verify conditions precedent are satisfied before execution
Document Structure
1. Recitals
- Identify original loan agreement by date, parties (full legal names), original principal
- Reference prior modifications to establish complete chain
- State current outstanding balance, business purpose, and modification circumstances
- Confirm authority and corporate approvals obtained
2. Defined Loan Documents
List all documents with precise identifiers:
| Document | Defined Term | Key Identifiers |
|---|
| Original loan agreement | "Loan Agreement" | Execution date, parties |
| Promissory note(s) | "Note" | Principal amount, date |
| Security agreement(s) | "Security Agreement" | Collateral description |
| Mortgage/deed of trust | "Mortgage" | Recording info, property |
| Guarantee(s) | "Guarantee" | Guarantor name(s) |
| All collectively | "Loan Documents" | — |
3. Modification Terms
Draft each change as a separate numbered paragraph:
- Interest Rate — New rate (fixed/variable), effective date; if variable: index + margin
- Maturity Date — Specific new date; confirm effect on intermediate milestones
