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Loan And Guarantee Agreement Template for Nigeria

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Key Requirements PROMPT example:

Loan And Guarantee Agreement

"I need a Loan and Guarantee Agreement for a ���500 million equipment financing facility between our manufacturing company as borrower, ABC Bank as lender, and our parent company as guarantor, with quarterly repayments over 5 years starting March 2025."

Document background
The Loan and Guarantee Agreement is a fundamental financing document used in Nigerian banking and commercial transactions when a party requires funding with third-party guarantee support. This document is essential in situations where additional security is required beyond the borrower's own covenant, particularly in corporate financing, project finance, or significant commercial transactions. The agreement combines two key elements: the loan facility (detailing amount, interest, repayment terms, and conditions) and the guarantee provisions (outlining the guarantor's obligations and the extent of their liability). It must comply with Nigerian banking laws, including BOFIA, Central Bank regulations, and money lending legislation, while also considering stamp duty requirements and registration obligations. The document is particularly relevant for both domestic Nigerian transactions and international financing arrangements where Nigerian law is the governing law.
Suggested Sections

1. Parties: Identification of the Lender, Borrower, and Guarantor(s)

2. Background: Recitals explaining the context of the loan and the guarantee arrangement

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

4. The Facility: Details of the loan amount, purpose, and availability

5. Interest: Interest rate, calculation method, payment periods, and default interest provisions

6. Repayment: Terms and schedule for repayment of the loan

7. Guarantee and Indemnity: Terms of the guarantee, including scope, limitations, and indemnification provisions

8. Representations and Warranties: Statements of fact and assurances from both Borrower and Guarantor

9. Covenants: Positive and negative obligations of the Borrower and Guarantor

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

11. Security: Details of any security arrangements securing the loan

12. Payments: Payment mechanics, currency, and timing provisions

13. Changes to Parties: Rules regarding assignment and transfer of rights and obligations

14. Notices: Communication requirements and contact details

15. General Provisions: Miscellaneous legal provisions including severability, amendments, and governing law

Optional Sections

1. Security Trustee Provisions: Required when there are multiple lenders and a security trustee arrangement

2. Intercreditor Provisions: Needed when there are multiple lenders with different priorities

3. Currency Conversion: Required for cross-border loans or when multiple currencies are involved

4. Tax Gross-Up and Indemnities: Detailed tax provisions needed for cross-border transactions or complex tax structures

5. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs

6. Set-off Rights: Specific set-off provisions when parties have multiple relationships

7. Anti-corruption Provisions: Required for compliance with international standards or when involving foreign parties

8. Force Majeure: Detailed force majeure provisions where specific risks need to be addressed

Suggested Schedules

1. Conditions Precedent: List of documents and conditions required before drawdown

2. Repayment Schedule: Detailed schedule of repayment dates and amounts

3. Form of Drawdown Request: Template for the Borrower to request loan disbursements

4. Form of Compliance Certificate: Template for periodic compliance certification

5. Security Documents: Forms of security documents or list of security arrangements

6. Interest Calculation Examples: Examples showing how interest will be calculated

7. Form of Transfer Certificate: Template for transferring rights and obligations

8. Contact Details: Detailed contact information for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































































Clauses







































Relevant Industries

Banking

Financial Services

Real Estate

Manufacturing

Oil and Gas

Agriculture

Telecommunications

Construction

Infrastructure

Mining

Retail

Healthcare

Technology

Transportation

Energy

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Secretariat

Commercial

Banking Operations

Investment

Business Development

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Lawyer

Finance Manager

Treasury Manager

Risk Manager

Compliance Officer

Company Secretary

Credit Manager

Relationship Manager

Transaction Manager

Managing Director

Chief Executive Officer

Commercial Director

Banking Officer

Loan Officer

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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