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Supplemental Loan Agreement for Malaysia

Supplemental Loan Agreement Template for Malaysia

A Supplemental Loan Agreement under Malaysian law is a formal legal document that modifies, amends, or supplements the terms of an existing loan agreement between parties. It operates within the framework of Malaysian contract law, particularly the Contracts Act 1950 and relevant financial regulations. This document enables parties to adjust loan terms, such as repayment schedules, interest rates, security arrangements, or other key provisions, while maintaining the validity of the original agreement. It must comply with Malaysian banking regulations, stamp duty requirements, and where applicable, the Financial Services Act 2013.

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What is a Supplemental Loan Agreement?

The Supplemental Loan Agreement serves as a critical instrument in Malaysian banking and finance practice, used when parties need to modify an existing loan arrangement without completely restating or replacing the original agreement. This document becomes necessary when circumstances require amendments to loan terms, such as extending repayment periods, revising interest rates, modifying security arrangements, or accommodating changes in the borrower's financial situation. It must comply with Malaysian banking regulations, including the Financial Services Act 2013 and the Contracts Act 1950, and requires proper stamping under the Stamp Act 1949. The agreement typically references the original loan documentation while clearly outlining the specific modifications being made, ensuring legal continuity and enforceability of the amended terms.

What sections should be included in a Supplemental Loan Agreement?

1. Parties: Identification of all parties to the supplemental agreement, including the original lender and borrower, and any new parties

2. Background: Recitals explaining the original loan agreement, reason for supplemental agreement, and current status

3. Definitions: Key terms used in the agreement, including references to defined terms in the original loan agreement

4. Interpretation: Rules for interpreting the agreement and its relationship with the original loan agreement

5. Amendments to Original Agreement: Specific modifications to the original loan agreement terms

6. Confirmation of Other Terms: Confirmation that unmodified terms of the original agreement remain in full force and effect

7. Conditions Precedent: Conditions that must be satisfied before the supplemental agreement becomes effective

8. Representations and Warranties: Updated or additional representations and warranties by the borrower

9. Security Confirmation: Confirmation that existing security remains in force and extends to obligations under the supplemental agreement

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

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

1. Additional Security: Include when new security is being provided as part of the supplemental arrangement

2. Release of Existing Security: Include when any existing security is being discharged or released

3. Change in Parties: Include when there are assignments, transfers, or additional parties joining the agreement

4. Revised Payment Terms: Include when payment schedule or terms are being modified

5. Additional Covenants: Include when new ongoing obligations are being imposed on any party

6. Fees and Expenses: Include when there are specific fees associated with the supplemental agreement

7. Default Provisions: Include when modifying or adding to the original event of default provisions

What schedules should be included in a Supplemental Loan Agreement?

1. Schedule 1 - Original Loan Agreement: Copy or details of the original loan agreement being supplemented

2. Schedule 2 - Amended and Restated Terms: Comprehensive list of all amended terms in their final form

3. Schedule 3 - New Payment Schedule: Revised payment dates and amounts if payment terms are modified

4. Schedule 4 - Additional Security Details: Details of any new security being provided

5. Schedule 5 - Conditions Precedent Documents: List of all documents required to be delivered before effectiveness

6. Appendix A - Form of Notices: Templates for any notices required under the supplemental agreement

7. Appendix B - Supplemental Security Documents: Forms of any new security documents 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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate & Property Development

Manufacturing

Construction

Agriculture

Mining & Resources

Retail & Commerce

Technology & Communications

Healthcare

Education

Infrastructure & Utilities

Relevant Teams

Legal

Finance

Credit Risk

Compliance

Corporate Banking

Loan Operations

Treasury

Risk Management

Company Secretarial

Banking Operations

Relevant Roles

Legal Counsel

Finance Manager

Credit Risk Officer

Relationship Manager

Loan Officer

Compliance Officer

Corporate Banking Manager

Chief Financial Officer

Legal Director

Credit Administrator

Treasury Manager

Risk Management Officer

Company Secretary

Banking Operations 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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