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Security Loan Agreement
"I need a Security Loan Agreement for a 5-year corporate loan facility of NGN 500 million to be secured against multiple assets including manufacturing equipment, inventory, and accounts receivable, with the loan to be disbursed in three tranches starting March 2025."
1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the loan arrangement and purpose of the security agreement
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. The Loan Facility: Details of the loan amount, purpose, and drawdown conditions
5. Security: Description of the assets provided as security and creation of the security interest
6. Perfection of Security: Requirements for registering and perfecting the security interest
7. Representations and Warranties: Statements of fact and assurances given by the borrower
8. Covenants: Positive and negative obligations of the borrower during the loan term
9. Events of Default: Circumstances that constitute default and their consequences
10. Enforcement: Rights and remedies of the lender upon default
11. Payments and Interest: Payment terms, interest calculations, and payment mechanics
12. Costs and Expenses: Allocation of costs related to the agreement and security
13. Notices: Communication procedures between parties
14. Assignment and Transfer: Rules regarding transfer of rights under the agreement
15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes
16. Execution: Signature blocks and execution formalities
1. Insurance: Requirements for insurance of secured assets, used when security includes physical assets requiring protection
2. Security Trustee Provisions: Required when multiple lenders are involved and a security trustee is appointed
3. Intercreditor Provisions: Used when there are multiple creditors with different priorities
4. Currency Provisions: Required when the loan involves foreign currency or multiple currencies
5. Tax Provisions: Detailed tax considerations when complex tax implications exist
6. Environmental Covenants: Required when security includes land or industrial assets with environmental risks
7. Islamic Finance Provisions: Required when the loan needs to comply with Islamic finance principles
1. Schedule 1 - The Secured Assets: Detailed description and documentation of all assets provided as security
2. Schedule 2 - Conditions Precedent: List of documents and conditions required before loan drawdown
3. Schedule 3 - Repayment Schedule: Detailed payment dates and amounts
4. Schedule 4 - Security Documents: List and copies of all related security documents
5. Schedule 5 - Form of Drawdown Notice: Template for requesting loan disbursements
6. Schedule 6 - Form of Compliance Certificate: Template for periodic compliance reporting
7. Appendix A - Registration Requirements: Details of security registration requirements under Nigerian law
8. Appendix B - Form of Transfer Certificate: Template for transferring rights under the agreement
Authors
Banking and Financial Services
Real Estate
Manufacturing
Agriculture
Oil and Gas
Construction
Telecommunications
Mining
Retail
Healthcare
Transportation and Logistics
Technology
Energy
Infrastructure Development
Legal
Finance
Risk Management
Compliance
Treasury
Credit
Corporate Secretariat
Operations
Investment
Business Development
Documentation
Security Administration
Chief Financial Officer
Legal Counsel
Finance Director
Risk Manager
Compliance Officer
Credit Manager
Treasury Manager
Corporate Secretary
Financial Controller
Banking Relationship Manager
Security Trustee
Loan Officer
Corporate Lawyer
Investment Manager
Asset Manager
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