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The Non Interest Bearing Loan Agreement is utilized when parties wish to establish a formal lending arrangement without charging interest, commonly seen in family loans, inter-company financing, or Islamic finance structures. This document is essential for compliance with Irish law and financial regulations, providing clear terms for the loan while protecting both lender and borrower interests. It's particularly relevant when parties want to avoid interest for religious, ethical, or tax planning reasons, or in group company structures where parent companies provide financial support to subsidiaries. The agreement includes comprehensive provisions for loan disbursement, repayment schedules, default scenarios, and enforcement mechanisms, while explicitly stating the interest-free nature of the arrangement to prevent future disputes.

1. Parties: Identifies and defines the Lender and Borrower with their full legal names and addresses

2. Background: Sets out the context of the loan and confirms the Lender's agreement to provide an interest-free loan to the Borrower

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

4. The Loan: Specifies the loan amount, confirms it is interest-free, and states the conditions precedent to drawdown

5. Repayment: Details the repayment schedule, method of payment, and any early repayment provisions

6. Borrower's Representations and Warranties: States the Borrower's confirmations regarding their legal capacity, financial condition, and authority to enter into the agreement

7. Borrower's Covenants: Sets out the Borrower's ongoing obligations during the term of the loan

8. Events of Default: Lists circumstances that would constitute a default and trigger acceleration of repayment

9. Consequences of Default: Describes the Lender's rights and remedies upon occurrence of an Event of Default

10. Notices: Specifies how formal communications between parties should be made and delivered

11. General Provisions: Contains standard boilerplate clauses including entire agreement, amendments, severability, and governing law