The basic legal documents of the HOA that may need to be amended are: in the absence of an exemption that requires unanimous agreement or from the lenders concerned, changes to credit contracts require the agreement of lenders holding a simple majority of outstanding loans and unused commitments (usually referred to as “necessary lenders” or “majority lenders”). This construction is necessary because borrowers need the flexibility to modify credit documents without having to bring together their entire group of lenders. Although all amendments can be important (for example. B, changes in negative baskets), market acceptance has long been such that a simple majority can result in minority lenders, unless the amendment includes a sacred right. While the inadequacy of the evidence proposed by the District Court suggests that the parties might have wanted to innovate may be questioned, the lesson that counsel developing a modified and revised funding agreement should learn from this decision is the importance of clearly explaining the parties` intention that the amended and revised agreement is not an innovation. The In re Fair Finance Company court stated that the 2004 agreement did not explicitly provide for the parties to consider maintaining the original security interests.9 In the development of an amended and revised financing agreement, counsel should include an explicit statement that the agreement is not intended to be an innovation or an end to the commitments arising from the original agreement. , and as part of guaranteed financing, that security interests established in accordance with the original agreement must be pursued and insured with obligations arising from the revised and revised agreement. Square links: Implementation of non-proportional renewals in the architecture of the proportional credit contract From the point of view of the partnership agreement, a new agreement may be necessary depending on the nature of the amendment or changes to an existing agreement may suffice. Examples: How much does it cost to change association documents? In the In Re Fair Finance Company, the amended and amended loan agreement (the “2004 agreement”) explicitly provided that the obligations under that agreement would be secured by a security interest for the same guarantees that guaranteed the original credit contract (“the 200 2)) and that the 2004 agreement “wanted the parties to amend and reaffirm the 2002 agreement” The District Court noted that the following provisions of the 2004 agreement supported the conclusion that the parties to the 2004 agreement is a new 2002 agreement: an important consideration in many EAs is how to implement a diversion of credits in extended and non-extended periods.