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Loan Assumption Agreement Template for Ireland

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Key Requirements PROMPT example:

Loan Assumption Agreement

"Need a Loan Assumption Agreement for the transfer of a €2.5M commercial property loan from ABC Properties Ltd to XYZ Developments Ltd, with Bank of Ireland as lender, to be completed by March 2025; must include provisions for existing tenants and multiple guarantors."

Document background
A Loan Assumption Agreement is utilized when a new party wishes to take over the obligations of an existing loan from the original borrower. This document is essential in situations such as property sales where the buyer wants to assume the seller's mortgage, corporate restructurings, or business acquisitions where existing financing needs to be transferred. The agreement must comply with Irish legal requirements and banking regulations, including the Consumer Credit Act 1995 and relevant EU directives. It typically includes detailed information about the original loan, current balance, payment terms, security arrangements, and conditions for the assumption. The Loan Assumption Agreement serves to protect all parties' interests by clearly documenting the transfer of obligations and any modifications to the original loan terms, while ensuring compliance with Irish banking and consumer protection regulations.
Suggested Sections

1. Parties: Identifies all parties to the agreement: Original Lender, Original Borrower, and Assuming Borrower

2. Background: Recitals explaining the original loan agreement, reason for assumption, and current status of the loan

3. Definitions: Defines key terms used throughout the agreement, including Original Loan Agreement, Assumption Date, Assumed Obligations, etc.

4. Assumption of Obligations: Core section detailing the assumption of loan obligations by the new borrower

5. Consideration: Details any consideration paid for the assumption of the loan

6. Effective Date: Specifies when the assumption becomes effective and any conditions precedent

7. Representations and Warranties: Statements by all parties regarding their capacity, authority, and other material facts

8. Original Borrower's Release: Terms of release for the original borrower, if applicable

9. Lender's Rights and Remedies: Preservation of lender's rights under the original loan agreement

10. Governing Law and Jurisdiction: Confirms Irish law as governing law and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements for all parties

Optional Sections

1. Security Arrangements: Required when existing security needs to be transferred or new security is being created

2. Guarantees: Include when there are new or continuing guarantees as part of the assumption

3. Conditions Subsequent: Include when there are post-closing obligations or requirements

4. Tax Provisions: Required when there are specific tax implications or allocations to be addressed

5. Property Details: Include for property-backed loans, detailing the secured property

6. Regulatory Compliance: Required when specific regulatory requirements need to be addressed

7. Insurance Requirements: Include when specific insurance obligations are being transferred or modified

8. Notice Requirements: Include when specific notice procedures need to be detailed

Suggested Schedules

1. Schedule 1 - Original Loan Agreement: Copy or details of the original loan agreement being assumed

2. Schedule 2 - Current Loan Balance: Statement of the current loan balance and payment status

3. Schedule 3 - Payment Terms: Details of payment schedule, interest rates, and other financial terms

4. Schedule 4 - Security Details: List and description of any security interests or collateral

5. Schedule 5 - Conditions Precedent: List of all conditions that must be satisfied before the assumption becomes effective

6. Appendix A - Form of Notice: Template for any required notices related to the assumption

7. Appendix B - Consent Forms: Standard forms for any required third-party consents

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

Relevant legal definitions






































Clauses




























Relevant Industries

Banking and Financial Services

Real Estate

Commercial Property

Residential Property

Corporate Finance

Construction

Infrastructure

Healthcare

Retail

Manufacturing

Agriculture

Hospitality

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit

Real Estate

Treasury

Operations

Commercial

Business Development

Corporate Finance

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Credit Manager

Loan Officer

Banking Relationship Manager

Real Estate Manager

Property Manager

Corporate Treasurer

Financial Controller

Business Development Manager

Commercial Director

Operations Manager

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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