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Loan With Collateral Agreement
"I need a Loan With Collateral Agreement for my manufacturing company to borrow RM 2 million from Bank Negara Malaysia, using our factory equipment and machinery as collateral, with the loan to commence in March 2025."
1. Parties: Identifies and defines the Lender and Borrower with complete legal names and addresses
2. Background: Explains the context of the loan and the parties' intention to enter into a secured lending arrangement
3. Definitions: Defines key terms used throughout the agreement including Loan Amount, Interest Rate, Collateral, Security Interest, etc.
4. Loan Terms: Details the principal amount, interest rate, repayment schedule, and payment methods
5. Collateral: Describes the assets provided as security and the nature of the security interest being created
6. Security Interest: Establishes the creation and perfection of the security interest in the collateral
7. Representations and Warranties: Statements of fact by the Borrower regarding their legal capacity, ownership of collateral, and other material matters
8. Covenants: Ongoing obligations of the Borrower regarding maintenance of collateral, insurance, and other requirements
9. Events of Default: Lists circumstances that constitute default and trigger enforcement rights
10. Enforcement Rights: Details the Lender's rights and remedies upon default
11. Notices: Specifies how formal communications between parties should be made
12. Governing Law: Confirms Malaysian law as governing law and jurisdiction for disputes
13. Execution: Signature blocks and execution requirements
1. Guarantor Provisions: Include when there is a third-party guarantor for the loan
2. Insurance Requirements: Detailed insurance requirements when specific insurance coverage is required for the collateral
3. Assignment and Transfer: Include when either party may need to transfer their rights or obligations
4. Cross-Default: Include when default under other agreements should trigger default under this agreement
5. Additional Security: Include when multiple forms of security or future security arrangements are contemplated
6. Tax Provisions: Include when specific tax considerations need to be addressed
7. Currency Provisions: Include when the loan involves foreign currency or multiple currencies
1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest calculations, and repayment schedule
2. Schedule 2 - Collateral Description: Detailed description and/or inventory of all assets serving as collateral
3. Schedule 3 - Condition Precedent Documents: List of documents required before loan disbursement
4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursement
5. Schedule 5 - Security Documents: List and copies of additional security documents
6. Schedule 6 - Insurance Requirements: Detailed insurance requirements for the collateral
7. Appendix A - Relevant Corporate Resolutions: Corporate authorizations and resolutions if borrower is a company
8. Appendix B - Registration Forms: Templates for security interest registration forms
Authors
Banking & Financial Services
Real Estate & Property
Manufacturing
Agriculture
Construction
Retail & Commercial
Technology & Communications
Transportation & Logistics
Healthcare
Education
Hospitality & Tourism
Legal
Finance
Credit
Risk Management
Compliance
Corporate Secretarial
Treasury
Commercial Banking
Relationship Management
Operations
Documentation
Legal Counsel
Finance Director
Credit Manager
Risk Officer
Loan Officer
Compliance Officer
Corporate Secretary
Banking Manager
Security Trustee Officer
Contract Administrator
Chief Financial Officer
Treasury Manager
Relationship Manager
Credit Analyst
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