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The Capital Loan Agreement is a crucial document used when a business or individual requires substantial capital financing in Malaysia. It is particularly relevant for major business expansions, asset acquisitions, project financing, or working capital requirements. The agreement must comply with Malaysian banking and finance regulations, including the Financial Services Act 2013 and the Contracts Act 1950. This document is essential for both financial institutions and borrowers as it clearly defines the lending relationship, establishes security arrangements, sets out repayment obligations, and provides protection for all parties involved. The agreement includes comprehensive details about interest calculations, drawdown mechanics, events of default, and remedy provisions, all tailored to meet Malaysian legal requirements and market practices.

1. Parties: Identifies and defines the Lender and Borrower with their full legal names, registration numbers (if applicable), and addresses

2. Background: Sets out the context of the loan agreement, including the purpose of the loan and any relevant pre-contractual discussions

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

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its approved purpose

5. Interest: Details the interest rate, calculation method, and payment frequency

6. Drawdown: Specifies the conditions precedent for drawdown and the drawdown procedure

7. Repayment: Sets out the repayment schedule, method, and terms

8. Security: Details the security arrangements for the loan

9. Representations and Warranties: Lists the representations and warranties given by the Borrower

10. Covenants: Specifies positive and negative covenants the Borrower must comply with

11. Events of Default: Lists circumstances that constitute default and the consequences

12. Fees and Expenses: Details all fees, charges, and expenses related to the loan

13. Notices: Specifies how formal notices should be given between parties

14. General Provisions: Contains standard boilerplate clauses including governing law, assignment, and amendments