Avatar's Blog
» Closing Documents - Entity Documents
Hard money loans are generally funded for companies, rather than individuals. If your company will receive the funds and be responsible for making monthly payments, etc. Avatar will need to know something about the company that they will lend the money to. Entity documents are the documents you receive when you form the company. The entity document indicates whether this is an S or C corporation, an LLC, LLP, non-profit organization, etc.
Corporate resolutions are a pack of papers containing about 10-15 pages. In it, you will find the corporate or organizaiton officers. Who is authorized to sign for the hard money loan and commit the group / corporation / organization to the terms and conditions? The corporate resolutions provide the answers. A full copy of those documents will be needed for closing.
A certificate of good standing simply indicates that the organization or group has registered this year with the proper government authorities and received acknowledgement of their 'good standing'.
