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Short Term Investment Agreement Template for England and Wales

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Key Requirements PROMPT example:

Short Term Investment Agreement

"I need a Short Term Investment Agreement for a £500,000 investment into a tech startup, with a 6-month term starting March 2025, including security provisions and early exit options for the investor."

Document background
The Short Term Investment Agreement is utilized when parties seek to formalize temporary investment arrangements, typically lasting less than one year. This document is essential in the UK market, particularly under English and Welsh law, where it provides a structured framework for capital deployment and return. The agreement addresses key aspects including investment amount, duration, returns, risk allocation, and regulatory compliance with FCA requirements. It's particularly relevant for working capital funding, bridge financing, and other short-term capital needs, offering protection for both investors and recipients through clear terms and conditions.
Suggested Sections

1. Parties: Identification and details of the investing and receiving parties

2. Background: Context of the investment and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Investment Terms: Amount, duration, and basic terms of the investment

5. Returns and Payment: Details of expected returns and payment mechanisms

6. Term and Termination: Duration and termination provisions

7. Governing Law: Confirmation of applicable law and jurisdiction

Optional Sections

1. Security: Details of any security or collateral - include when investment is secured against assets

2. Exit Provisions: Terms for early exit or transfer - include when early termination might be needed

3. Representations and Warranties: Additional assurances from parties - include for larger or more complex investments

Suggested Schedules

1. Investment Schedule: Detailed breakdown of investment amounts and timing

2. Due Diligence Documents: Key financial and corporate information

3. KYC Documentation: Required identity and verification documents

4. Security Documents: Details of any security arrangements - include if security is provided

Authors

Alex Denne

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

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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000: Primary legislation that regulates financial services and markets in the UK, establishing requirements for authorized persons/firms and setting financial promotion rules

Companies Act 2006: Core company law that governs corporate investment structures, directors' duties and responsibilities, and share capital requirements

Financial Services Act 2012: Updates to financial regulation framework and financial conduct requirements

FCA Regulations: Regulatory framework covering investment rules, conduct of business requirements, and client categorization rules set by the Financial Conduct Authority

Money Laundering Regulations 2017: Regulations covering due diligence requirements, anti-money laundering provisions, and Know Your Client (KYC) requirements

Consumer Credit Act 1974: Legislation governing consumer credit agreements and related financial matters, if applicable to the investment structure

Proceeds of Crime Act 2002: Legislation dealing with money laundering and proceeds of crime, relevant for investment due diligence

EU Retained Law: Post-Brexit European Union laws retained in UK legislation that may affect investment agreements and financial services

Common Law Contract Principles: Fundamental principles of contract law under English common law system, including offer, acceptance, consideration, and intention to create legal relations

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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