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Intra Group Loan Agreement for New Zealand

Intra Group Loan Agreement Template for New Zealand

A comprehensive agreement governed by New Zealand law that establishes the terms and conditions for a loan arrangement between companies within the same corporate group. The document incorporates specific provisions required under New Zealand tax and companies legislation, particularly addressing transfer pricing requirements, thin capitalization rules, and related party transaction obligations. It sets out the loan amount, interest terms, repayment provisions, and includes necessary tax and regulatory compliance mechanisms while maintaining flexibility for group-wide financial management.

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Intra Group Loan Agreement

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What is a Intra Group Loan Agreement?

This document is essential for formalizing financial arrangements between related entities within a corporate group structure. An Intra Group Loan Agreement is commonly used when one group company provides financing to another, requiring careful consideration of New Zealand's regulatory framework, particularly in relation to tax implications, transfer pricing requirements, and financial reporting obligations. The agreement typically includes provisions for interest calculation, repayment terms, security arrangements (if applicable), and compliance with local corporate and tax laws. It's particularly important for multinational groups operating in New Zealand and local groups managing internal capital allocation, ensuring both commercial efficacy and regulatory compliance.

What sections should be included in a Intra Group Loan Agreement?

1. Parties: Identifies the lender and borrower entities within the group structure

2. Background: Sets out the context of the loan within the group structure and purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

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

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

6. Repayment: Sets out repayment terms, prepayment rights, and maturity date

7. Representations and Warranties: Standard corporate representations regarding capacity and authority

8. Tax Provisions: Addresses withholding tax, tax compliance, and transfer pricing requirements

9. Events of Default: Lists circumstances that trigger default and enforcement rights

10. General Provisions: Contains boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Intra Group Loan Agreement?

1. Security: Include when the loan is to be secured against assets or guaranteed

2. Currency Provisions: Required for multi-currency facilities or when exchange rate risk needs to be addressed

3. Subordination: Include when the loan needs to be subordinated to other group or external debt

4. Financial Covenants: Include when specific financial metrics need to be maintained

5. Group Company Accession: Include when additional group companies may join as borrowers or guarantors

6. Set-off Rights: Include when parties want explicit rights to set off amounts against other group obligations

7. Anti-Money Laundering Compliance: Include when required by size or nature of facility

What schedules should be included in a Intra Group Loan Agreement?

1. Facility Terms: Details specific commercial terms including amount, interest rate, and repayment schedule

2. Form of Drawdown Notice: Standard form for requesting loan disbursements

3. Transfer Pricing Methodology: Documents the basis for interest rate determination in compliance with tax requirements

4. Group Structure Chart: Shows relationship between lender and borrower within group structure

5. Form of Compliance Certificate: Template for periodic confirmation of compliance with agreement terms

6. Security Details: If applicable, details of any security or guarantees provided

7. Form of Accession Deed: If applicable, template for additional group companies to join the agreement

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

New Zealand

Publisher

Ƶ

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions



















































Clauses

































Relevant Industries

Financial Services

Manufacturing

Retail

Technology

Energy

Mining

Real Estate

Infrastructure

Healthcare

Telecommunications

Agriculture

Professional Services

Transportation and Logistics

Relevant Teams

Legal

Finance

Treasury

Tax

Compliance

Corporate Secretariat

Accounting

Risk Management

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Group Financial Controller

Tax Director

Corporate Lawyer

Legal Counsel

Company Secretary

Financial Accountant

Treasury Analyst

Tax Manager

Compliance Officer

Finance Manager

Group Accountant

Corporate Finance Manager

Industries








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