Document background
The Loan Origination Agreement serves as the primary documentation for establishing a lending relationship between a financial institution and a borrower in Malaysia. This document is essential when initiating any new loan facility, whether for corporate financing, project development, or business expansion. The agreement must comply with Malaysian banking regulations, particularly the Financial Services Act 2013 and Bank Negara Malaysia guidelines, while addressing all aspects of the loan relationship including drawdown mechanics, security arrangements, representations and warranties, and events of default. The Loan Origination Agreement is typically supplemented by security documents and is crucial for both the lender's risk management and the borrower's understanding of their obligations. It forms the foundation for the ongoing lending relationship and provides the framework for managing the loan throughout its lifecycle.
