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Loan Agreement Between Companies Template for Australia

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Key Requirements PROMPT example:

Loan Agreement Between Companies

"I need a Loan Agreement Between Companies for a secured loan of AUD 5 million to finance equipment purchase, with the equipment itself serving as security and quarterly repayments over 3 years starting March 2025."

Document background
This Loan Agreement Between Companies is essential for documenting corporate lending transactions in Australia. It is designed for use when one company is providing financial accommodation to another, whether as a one-off loan or as part of ongoing financial arrangements. The agreement incorporates requirements under Australian law, including the Corporations Act 2001 (Cth), Personal Property Securities Act 2009 (Cth), and relevant financial services regulations. It contains comprehensive provisions covering loan terms, security arrangements, representations and warranties, financial covenants, and events of default. The document is suitable for both secured and unsecured lending, and can be customized based on the specific requirements of the transaction, including different security structures, guarantee arrangements, and special conditions.
Suggested Sections

1. Parties: Identifies the lender and borrower with their full legal names, ACN/ABN, and registered addresses

2. Background: Explains the context of the loan and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules

4. The Loan: Details the loan amount, purpose, and drawdown conditions

5. Interest: Specifies interest rate, calculation method, and payment terms

6. Repayment: Sets out repayment schedule, method, and early repayment provisions

7. Conditions Precedent: Lists conditions that must be satisfied before the loan becomes available

8. Representations and Warranties: States the borrower's assertions about its legal and financial status

9. Undertakings: Details ongoing obligations of the borrower during the loan term

10. Events of Default: Lists circumstances that constitute default and their consequences

11. Costs and Expenses: Allocates responsibility for legal and other costs

12. Notices: Specifies how formal communications between parties should be made

13. General Provisions: Contains standard boilerplate clauses including governing law, assignment, and amendments

Optional Sections

1. Security: Include when the loan is secured by assets or guarantees

2. Guarantee: Include when there are third-party guarantors for the loan

3. Interest Rate Adjustment: Include for variable rate loans or when there are interest rate step-ups/step-downs

4. Facility Limits: Include for revolving facilities or multiple tranche loans

5. Financial Covenants: Include when specific financial ratios or conditions must be maintained

6. Review Events: Include when periodic review of facility terms is required

7. Special Conditions: Include for industry-specific or unique requirements

8. Cross-Default: Include when default under other agreements triggers default under this loan

9. Subordination: Include when the loan needs to be subordinated to other debt

Suggested Schedules

1. Loan Terms Schedule: Details of loan amount, interest rate, term, and repayment schedule

2. Security Details: List and description of security assets and their values

3. Conditions Precedent Documents: Checklist of required documents and conditions

4. Drawdown Notice Form: Template for requesting loan disbursements

5. Financial Covenants Calculations: Formulas and methods for calculating financial ratios

6. Guarantor Obligations: Details of guarantor commitments and limits

7. Permitted Security Interests: List of pre-approved security interests

8. Repayment Schedule: Detailed amortization table if applicable

9. Required Insurance: Specifications for insurance coverage of security assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































































Clauses




































Relevant Industries

Banking & Financial Services

Corporate Lending

Commercial Real Estate

Manufacturing

Retail

Technology

Mining & Resources

Agriculture

Healthcare

Infrastructure

Transport & Logistics

Professional Services

Construction

Energy

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Assessment

Operations

Company Secretariat

Business Development

Commercial

Loan Administration

Board of Directors

Executive Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Company Secretary

Financial Controller

Credit Manager

Risk Manager

Commercial Director

Managing Director

Business Development Manager

Compliance Officer

Account Manager

Corporate Banking Manager

Investment Manager

Director of Operations

Chief Executive Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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