What must a borrower do to ensure compliance with a Loan Agreement?

To ensure compliance with a Loan Agreement, a borrower must meet the repayment conditions outlined in that agreement. These conditions typically specify the amount owed, the payment schedule, and any interest rates or penalties for late payment. By adhering to these terms, the borrower fulfills their contractual obligations and maintains a good standing with the lender. Meeting these repayment conditions is essential for avoiding default and potentially securing future loans.

Providing ongoing financial statements may be beneficial for the lender to monitor the borrower's financial situation, but it is not a direct requirement for compliance with the existing loan agreement itself. Negotiating terms yearly can be part of managing an ongoing borrowing relationship, but it is not mandatory and does not directly relate to compliance unless new terms are put into effect. Submitting additional loan applications periodically is not a requirement of complying with the original loan agreement; rather, it is more related to seeking additional funding or refinancing rather than adhering to the terms already in place.