Signing is an important milestone in a finance transaction. It is the stage when the parties execute the agreed versions of the documents and the transaction becomes binding (albeit, in some cases, subject to certain Conditions precedent—see Practice Note: Conditions precedent).
It usually occurs before or at the same time as Completion (sometimes referred to as 'closing'), which is the point at which money moves between the parties and the transaction is 'completed'. In a simple corporate facility, this will involve money moving from the lender to the borrower. In other types of financing, such as acquisition or asset financing, this will usually involve money moving from the lender(s) to the borrower and then from the borrower (as purchaser) to the seller of the business or asset.
For more information on signing and completion in loan transactions and the tasks typically undertaken by lawyers during this period, see Practice Note: Signing and completion phase in loan transactions.
This Practice Note looks at the Execution of finance and other documentation in a loan transaction.