Comment to BJAV Loan Agreement Preface: This is really a personal loan to Leon using the boat as collateral. Is this your understanding? 1.1-1.3. Leon should be able to use the loan proceeds for whatever he wants other than purchase of margin securities. See also 7.19—which prohibits his using the proceeds for personal family or household purposes. Is the term and interest rate what you agreed to? 2.1 If the deal is that Leon does not pay fees—maybe you want to have them waive the amendment fee. vo c cs.s4 3.2 Regarding the additional collateral, the lien on Leon's accounts at US Trust should be limited to the amounts owing under the loan agrginent kso, there is the issue of his pledging moneys received foi(;)r., chartering the boat prior to any default. 3.4 Are you comfortable with the limitations for chartering the boat in 3.4(c) (e.g., 30 day max without bank approval)? When Leon and Debra give the boat to MRA for auction—does it charter the boat to MRA? Not sure this complies with 3.4. I assume the boat is registered with the Vessel Flag Registry? Leon will have to keep a Notice of Mortgage sign prominently displayed in the pilot house, chart room or master's cabin! 4.4 If you are authorizing direct debit, you will need to give them an account number and keep funds in the account to make loan payments. NOTE that if you if you terminate direct debit -the interest rate goes up by .5% at the bank's option. You may want to get this waived. 4.9 Is Tom set up to do the tax withholding on behalf of the bank—see Section 4.9. 5.1 J.oan Documents, Who is doing the UCC search of BJAV that is a prerequisite to closing the loan? Do you have a Certificate of Insurance evidencing that the boat is / insured? Not sure what they want here. EFTA01128059