Custom Capital Solutions.
Creative Ideas.
Objective Advice.

Are There Landmines in Your Bank’s Documents?

  • Right of “set-off” against bank deposit accounts. Your bank can take your money from your account first, and then you can argue about it later.
  • “Gross-up” provisions. Your bank can increase your interest rate at its sole discretion, due to regulatory changes that increase the bank’s capital requirements.
  • “Material adverse change” (MAC) clauses. Your bank can call your debt early, regardless of its maturity date, for any reason it deems “material and adverse.”
  • “Hair-trigger” defaults. Small violations of the debt terms—nonmaterial, nonpayment-related defaults—can generate enormous negative financial consequences for your institution.
  • “Mother-May-I” provisions: Banks will often require you to obtain their permission before pursuing strategically important actions, which can restrict your ability to take up key initiatives.

Hamlin Capital Advisors can work with you to provide financing terms that work with your mission, not counter to it.

To discuss your individual needs, please call us at 813-280-1000, or contact us.