Loan Agreement Term Sheet
This Term Sheet relates to and is based on our Long and Short Form Loan Agreements. A term sheet is designed to help the parties to the loan to set out clearly and in advance, the terms on which the loan will be made. It serves as a non-binding letter of intent which summarises all the important financial and legal terms as well as quantifying the amount of the loan and its repayment. It is the basis on which to develop a more detailed binding legal document without misunderstanding.
Once the parties involved reach agreement on the details as laid out in the term sheet, a binding legal agreement can be drawn up in the form of our Long or Short Form Loan Agreements. While this term sheet reflects many of the provisions of our Long and Short Form Loan Agreements, it should be tailored to fit the agreed commercial terms.
This Term Sheet contains the following headings:
• Interest Calculations
• Representations and Warranties
• Events of Default
• Assignment and Transfer
• Governing Law and Jurisdiction
NOTE: This document is not intended to be regulated by the Consumer Credit Act 1974 which requires that businesses that lend money to consumers must be licensed to do so by the OFT. This agreement is not intended for consumer purposes; trading without a licence is a criminal offence and can result in a fine and/or imprisonment.
This Term Sheet template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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