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Loan Indemnification Agreement Template for Ireland

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Key Requirements PROMPT example:

Loan Indemnification Agreement

"I need a Loan Indemnification Agreement under Irish law where a parent company provides indemnification for a €5 million commercial property loan to its subsidiary, with specific provisions for step-in rights and quarterly reporting requirements."

Document background
The Loan Indemnification Agreement is a crucial financial instrument used in Irish lending transactions where additional security or protection is required by the Lender. This document becomes essential in scenarios where the original loan's risk profile necessitates third-party support, such as in corporate group structures, project finance, or high-value commercial lending. The agreement, governed by Irish law and regulated under the Central Bank of Ireland's framework, provides detailed mechanisms for risk mitigation and loss prevention. It typically follows standard market practice in Irish financial services while incorporating specific provisions required by Irish contract law and financial regulations. The document includes comprehensive details about the underlying loan, the scope of indemnification, trigger events, and enforcement mechanisms, ensuring compliance with both domestic Irish legislation and relevant EU directives.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement - typically the Indemnifier, the Lender, and potentially the original Borrower

2. Background: Sets out the context of the agreement, including reference to the original loan agreement and the purpose of the indemnification

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. Scope of Indemnification: Clearly defines the extent and nature of the indemnification obligation

5. Indemnification Terms: Details the specific circumstances under which the indemnification becomes effective and the obligations of the indemnifier

6. Payment Terms: Specifies how and when payments under the indemnification must be made

7. Representations and Warranties: States the facts and assurances provided by each party

8. Covenants: Outlines ongoing obligations and restrictions on the parties

9. Events of Default: Defines circumstances that constitute a breach and trigger enforcement rights

10. Remedies: Sets out the rights and remedies available to parties in case of default

11. Duration and Termination: Specifies the term of the agreement and circumstances for termination

12. Notices: Provides the mechanism and addresses for formal communications between parties

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

14. Execution: Formal signing section with signature blocks for all parties

Optional Sections

1. Security: Include when the indemnification is backed by specific assets or guarantees

2. Assignment and Transfer: Include when parties want to explicitly address the ability to transfer rights under the agreement

3. Costs and Expenses: Include when there's a need to specify who bears various costs related to the agreement

4. Tax Provisions: Include when tax implications need to be specifically addressed

5. Force Majeure: Include when parties want to address circumstances beyond their control

6. Confidentiality: Include when sensitive information is involved and needs protection

7. Anti-Money Laundering Compliance: Include when required by the nature of the transaction or parties involved

8. Step-In Rights: Include when lender needs right to take control in specific circumstances

Suggested Schedules

1. Schedule 1 - Original Loan Agreement: Copy or key terms of the underlying loan agreement being indemnified

2. Schedule 2 - Payment Schedule: Detailed payment terms and schedules if applicable

3. Schedule 3 - Security Details: Details of any security or collateral provided for the indemnification

4. Schedule 4 - Form of Notice: Standard forms for various notices required under the agreement

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

6. Appendix A - Calculation of Payments: Methodology for calculating payments under the indemnification

7. Appendix B - Contact Details: Detailed contact information for all parties and their representatives

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

Financial Services

Real Estate

Construction

Manufacturing

Private Equity

Commercial Property

Infrastructure

Healthcare

Retail

Technology

Energy

Agriculture

Transportation

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Finance

Commercial Banking

Loan Operations

Document Management

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Risk Manager

Credit Risk Officer

Commercial Banking Manager

Loan Officer

Corporate Finance Manager

Compliance Officer

Financial Controller

Company Secretary

Senior Legal Advisor

Banking Relationship Manager

Credit Analyst

Portfolio 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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