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The Director's Loan Agreement is a crucial document used when a company in New Zealand provides financial assistance to one of its directors. This type of arrangement requires careful documentation to ensure compliance with the Companies Act 1993, tax legislation, and corporate governance requirements. The agreement is typically used when a director needs to borrow funds from the company for personal or business purposes, or when structuring existing informal lending arrangements into a formal agreement. It includes essential details such as loan amount, interest rates (which must be set at market rates to avoid tax implications), repayment terms, security arrangements, and default provisions. The document must be properly authorized through appropriate corporate approvals and may require shareholder consent depending on the loan's materiality. This agreement helps protect both the company's and director's interests while ensuring transparency and regulatory compliance in New Zealand's corporate environment.

1. Parties: Identifies the company and the director entering into the loan agreement

2. Background: Explains the context of the loan and the director's relationship with the company

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the amount being loaned and its intended use

5. Interest Rate: Details the applicable interest rate, including whether it's fixed or variable, and how it's calculated

6. Repayment Terms: Specifies how and when the loan will be repaid, including payment schedule and methods

7. Security: Details any security or guarantees provided for the loan

8. Events of Default: Defines circumstances that constitute default and consequences

9. Company's Rights and Obligations: Outlines the company's responsibilities and rights under the agreement

10. Director's Representations and Warranties: Director's confirmations regarding their capacity and authority

11. Tax Implications: Addresses tax treatment and responsibilities

12. Termination: Conditions under which the agreement can be terminated

13. General Provisions: Standard boilerplate clauses including notices, amendments, governing law