Facilitator Guide

Principal Repayments

Facilitator Guide

Principal Repayments

Topic: Commercial Lending
Duration: 1 hr
Format: Remote or in person

What’s covered

Amortization
Voluntary prepayments
Mandatory prepayments
Reinvestment rights
Prepayment process
Prepayment penalties

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/principal-repayments/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Principal Repayments

An overview of loan repayments, including a discussion of amortization, balloon payments, voluntary vs. mandatory prepayments, and prepayment penalties.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What are some of the different ways that a loan can amortize? Do all loans have an amortization schedule?
When might a borrower be required to make a prepayment?
Why do borrowers typically like to have reinvestment rights? How do lenders view reinvestment rights?
What’s the difference between a prepayment credited against amortization payments in direct order of maturity and a prepayment credited against amortization payments in inverse order of maturity?
What’s a Make-Whole Premium and when might a lender insist on one?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.