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Amended Loan Agreement for Malaysia

Amended Loan Agreement Template for Malaysia

A Malaysian law-governed Amended Loan Agreement is a formal legal document that modifies the terms and conditions of an existing loan agreement between a lender and borrower. The document operates under Malaysian financial and contractual law frameworks, particularly the Contracts Act 1950 and Financial Services Act 2013. It details specific changes to the original loan agreement, such as revised payment terms, interest rates, security arrangements, or other key provisions, while maintaining the validity of unchanged terms from the original agreement. The document ensures compliance with Malaysian banking regulations and includes necessary provisions for both conventional and Islamic banking requirements where applicable.

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What is a Amended Loan Agreement?

The Amended Loan Agreement is utilized when parties to an existing loan facility need to modify specific terms or conditions of their original agreement while maintaining the basic lending relationship. This document is crucial in the Malaysian lending landscape, where it must comply with both the Financial Services Act 2013 and Contracts Act 1950. It's commonly used when circumstances require adjustments to payment schedules, interest rates, security arrangements, or other key terms. The agreement carefully documents all modifications while preserving unchanged terms from the original agreement, ensuring legal continuity and enforceability. It's particularly important in Malaysia's dual banking system, where both conventional and Islamic banking principles may need to be considered. The document typically requires careful review and approval from multiple stakeholders, including legal counsel, financial advisors, and regulatory compliance officers.

What sections should be included in a Amended Loan Agreement?

1. Parties: Identification of the Lender and Borrower, including full legal names, registration numbers, and registered addresses

2. Background: Recitals explaining the original agreement details, reason for amendment, and confirmation that parties wish to amend specific terms

3. Definitions: Definitions of terms used in the agreement, including both original terms and any new terms introduced by the amendment

4. Amendment Effective Date: Specification of when the amendments take effect

5. Amendments to Original Agreement: Detailed listing of specific clauses being amended, showing both original and new text

6. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain unchanged and in full force

7. Loan Amount and Purpose: Updated loan amount if changed, or confirmation of existing amount, and purpose of the loan

8. Interest Rate and Payments: Modified interest rate terms, payment schedule, and calculation methods if amended

9. Representations and Warranties: Updated or reaffirmed representations and warranties of both parties

10. Events of Default: Any modified events of default or confirmation of existing ones

11. Governing Law and Jurisdiction: Confirmation of Malaysian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a Amended Loan Agreement?

1. Security Amendments: Required if amendments affect any security arrangements or collateral

2. Change in Guarantors: Include if there are any changes to guarantors or guarantee terms

3. Conditions Precedent: Include if there are new conditions that must be met before amendments take effect

4. Additional Covenants: Include if new covenants are being added or existing ones modified

5. Fee Arrangements: Include if amendment involves new or modified fees

6. Tax Provisions: Include if amendment affects tax-related obligations

7. Insurance Requirements: Include if changes affect insurance obligations

8. Assignment and Transfer: Include if amendment affects ability to assign or transfer rights

What schedules should be included in a Amended Loan Agreement?

1. Schedule 1 - Original Loan Agreement: Copy or reference to the original loan agreement being amended

2. Schedule 2 - Amended Payment Schedule: Updated amortization schedule showing revised payment dates and amounts

3. Schedule 3 - Amended Security Details: Updated list and details of security or collateral if changed

4. Schedule 4 - Conditions Precedent Checklist: List of conditions that must be satisfied before amendments take effect

5. Schedule 5 - Form of Notices: Templates for any notices required under the amended agreement

6. Appendix A - Updated Security Documents: Copies of any modified security documents

7. Appendix B - Guarantor Consent Letters: Written consents from guarantors to the amendments if required

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions











































Clauses






























Relevant Industries

Banking and Financial Services

Real Estate and Property Development

Manufacturing

Construction

Infrastructure

Energy and Utilities

Technology and Telecommunications

Healthcare

Agriculture

Mining and Resources

Retail and Commercial

Transportation and Logistics

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Secretariat

Treasury

Credit Administration

Corporate Banking

Operations

Documentation

Relevant Roles

Legal Counsel

Finance Manager

Credit Officer

Risk Manager

Compliance Officer

Corporate Secretary

Chief Financial Officer

Banking Relationship Manager

Treasury Manager

Loan Officer

Contract Administrator

Legal Director

Finance Director

Corporate Banking 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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