The interest rate charged is not the only concern of the banks. The loan contract (commonly known as the credit or facilities agreement) will also deal with other issues, such as:
• the amount being lent and its associated costs, including bank fees;
• the requirements of the borrower-things the borrower must do (positive covenants) and must not do (negative covenants);
• information that must be provided by the borrower and confirmed at the outset and in the future (representations and warranties);
• financial performance-what are the financial tests and what happens if they are not achieved; and
• what happens when things go wrong and the loan is in default.
Dealing with what happens when things go wrong or are not as expected is a major concern for lenders. This is also evidenced by the lenders' interest in the extent of their ability to take control of the asset or enterprise (to "step in") should there be a (potential) default on their loans-this is their security package. Security might be taken either on physical assets or on contracts such as the concession agreement or licence that would give the lenders the same rights and obligations that the borrower had.