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The Loan Agreement and Mortgage is a fundamental document in Nigerian secured lending transactions, used when a borrower requires financing secured against real property. This document serves the dual purpose of establishing the loan facility terms and creating a valid mortgage security interest under Nigerian law. It is essential for both commercial and residential property financing, ensuring compliance with the Central Bank of Nigeria's regulations, the Land Use Act, and state-specific property laws. The agreement typically includes detailed provisions on loan amount, interest calculations, repayment terms, property descriptions, borrower's obligations, and the lender's security and enforcement rights. It's particularly important in Nigeria's real estate financing sector, where proper documentation of security interests is crucial for lender protection and regulatory compliance.

1. Parties: Identification of the Lender, Borrower, and any other relevant parties with their full legal names and addresses

2. Background: Context of the loan agreement and mortgage, including the purpose of the loan and brief description of the property

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

4. The Facility: Details of the loan amount, purpose, and conditions precedent to drawdown

5. Interest and Fees: Interest rate, calculation method, default interest, and all applicable fees

6. Repayment Terms: Repayment schedule, payment methods, and prepayment provisions

7. Security: Details of the mortgage and creation of security interest over the property

8. Property Details and Covenants: Description of the mortgaged property and borrower's covenants regarding property maintenance and use

9. Representations and Warranties: Statements of fact and assurances given by the borrower regarding their status and the property

10. Borrower's Covenants: General and financial covenants the borrower must maintain throughout the loan term

11. Events of Default: Circumstances constituting default and consequences thereof

12. Lender's Rights and Remedies: Powers and remedies available to the lender upon default, including power of sale

13. Notices: Method and addresses for serving notices between parties

14. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes