The Master Rate Purchase Agreement (MIPA) describes the terms and conditions between the municipality and the lender, which include insurance, debt servicing requirements, asset maintenance, option to purchase, etc. MIPA will then be subject to the approval of the governing body. After approval, the municipality can begin the year-round to apply for the acquisition of a large number of assets. Because MIPA has been approved in advance by law, the municipality can respond more quickly and effectively to the department`s request for funding, saving money. While the obvious benefits of a credit guidance line should now be obvious, there is another factor of this type of financing that makes it an attractive option: the relationship with your banker. As bankers, we are pleased that a business bank of Texas client pre-plans and asks for a guidance line for loans, as it allows us to be involved in the planning process. This makes us better able to support business owners by giving contributions and ideas to help them achieve their goals. Banking relationships are strengthened by the transparency of the planning process and business growth is considerably more mitigated by close communication on the resulting financing needs. In previous articles, I`ve shared why a line of credit can be a great growth tool for any business, and I`ve compared the benefits of using a line of credit instead of a credit card. The Texas Business Bank offers business owners different types of lines of credit, including debtors, inventory and guidance lines. Today, we will look at what a credit line is and why they are useful to producing companies. Like all other loans, the lender must obtain the corresponding approval of its lending committee or another credit authorization procedure for the specific loan contract and the property.
After approval, the lender can establish the terms of the main credit contract and the master credit contract. After the master loan contract is established, the lender`s employees enter the corresponding information from the borrowers, the terms and conditions of credit in our online order form for the master building documents. Based on this information, our automated system will establish the Master Construction Loan Agreement, the warranties requested and all the business decisions requested.