Document background
The Subordinate Loan Agreement is a specialized financing document used when a borrower requires additional funding that will be subordinated to existing or future senior debt obligations. This agreement is particularly relevant in New Zealand's financial market context, where companies often seek to diversify their funding sources while maintaining flexibility with senior lenders. It contains specific provisions required under New Zealand law, including compliance with the Financial Markets Conduct Act 2013 and Companies Act 1993. The document establishes the mechanism for subordination, defines payment conditions, and includes appropriate representations and warranties for New Zealand corporate entities. It's commonly used in corporate refinancing, growth capital scenarios, or as part of larger financing structures where senior lender protection is paramount.
