New & Updated Loan Agreements
Our Loan & Finance templates already cover a wide variety of lending arrangements. We have now however added the following useful templates that build on our existing range of documents to further broaden the scope of our finance offering:
• Intra-Group Loan Agreement – this regulates the making of a loan from a parent company to one of its subsidiaries where both parties want to document the basic terms of this arrangement in a simple document so as to avoid any potential future misunderstanding that can result from not having any formal documentation in place.
• Waiver Letter - this letter is used by a lender when a borrower has defaulted under a loan agreement and gives notice to the borrower that the lender is waiving a breach of one or more obligations.
• Loan Repayment Demand Letter – this letter is used by a lender when a borrower has defaulted under a loan agreement and gives notice of default to the borrower requiring the borrower to pay the amount outstanding under the loan agreement or face legal proceedings without further notice.
• Board Minutes - Approval of Loan Agreement – these minutes record the proceedings at a board meeting where a loan agreement is approved and a named person or persons are given express authority to enter into the loan.
• Term Sheet – this relates to and is based on our Long and Short Form Loan Agreements and is designed to help the parties to a 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.
We have also updated our popular Long Form and Short Form Loan Agreements with additions for best practice. We have included two new clauses, (1) Payments, and (2) Conditions Precedent. We have also added extra definitions to improve the clarity and readability of these documents.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.