Contractual terms aimed at the protection of a lending institution in the area of loans provided to corporations

The thesis is focused on the analysis of legislation concerning loans and usage of contractual undertakings for the purpose of protection of the credit institution in the field of loans provided to corporations. Loan represent an economic tool that enables to provide a temporarily unused financial sources to another subject based on agreed terms and returnable character for the consideration in the form of interest payment. Corporation represent a form of legal person that is based on organized association of persons (physical and legal). The credit institution is exposed to a number of risks in relation to loans business. In the forefront it is exposed to the credit risk of non-payment of the debt by the debtor at maturity date mainly because of factual inability (deficient sources) to repay the debt. The credit institution is next to the credit risk exposed to other risks - liquidity risk, market risks (interest and exchange rate risk) and risk of changes of legislation (regulatory environment). Analysis of applicable contractual undertakings for the purpose of reduction of credit and other risks represent the main focus of the thesis. The thesis is in this context focused also on the economic aspects next to the legal issues, especially risk analysis beforehand of the application of the..