The credit agreements of commercial banks, savings banks, financial companies, insurance companies and investment banks are very different and all have a different purpose. «Commercial banks» and «savings banks», because they accept deposits and benefit from FDIC insurance, generate credits that incorporate the concepts of «public trust». Prior to intergovernmental banking, this «public trust» was easily measured by public banking supervisors, who were able to see how local deposits were used to finance the working capital needs of local industry and businesses and the benefits of using this organization. «Insurance institutions» that collect premiums for the provision of life or claims/accident insurance have established their own types of credit agreements. Credit agreements and documentation standards for «banks» and «insurances» were developed from their individual cultures and were governed by guidelines that in one way or another addressed the debts of each organization (in the case of «banks», the liquidity needs of their depositors; in the case of insurance organizations, liquidity must be linked to their expected «claims»). The termination of a conditional lease or sale agreement is subject to separate rules. Institutional credit operations also include revolving and non-revolving credit options. However, they are much more complicated than retail contracts. They may also include the issuance of bonds or a credit consortium in which several lenders invest in a structured credit product. Institutional credit agreements usually include a lead underwriter. The songwriter negotiates all the terms of the credit transaction. The conditions of sale include the interest rate, the terms of payment, the duration of the credit and any penalty in case of late payment.
Sub-writers also facilitate the integration of several parts into the loan as well as all structured tranches that may have their own individual maturities. The right of withdrawal applies to all regulated consumer credit agreements, with the exception of full disclosure of all loan terms in a credit agreement. The main credit terms included in the credit agreement are the annual interest rate such as interest applicable to outstanding balances, all account fees, loan term, payment terms and all consequences in the event of late payment. If you do not correctly comply with the rules of consumer credit, the execution of a credit agreement against a customer is only possible with a court order. Some agreements entered into before 6 April 2007 may not be applicable at all. Credit agreements are usually written, but there is no legal reason why a credit agreement should not be a purely oral agreement (although oral agreements are more difficult to enforce). For commercial banks and large financial firms, «credit agreements» are generally not categorized, although «credit portfolios» are often roughly divided into «personal loans» and «commercial credits,» while the «commercial» category is then divided into «industrial» and «commercial real estate.»