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Loan Settlement Agreement
"I need a Loan Settlement Agreement for a QAR 5 million corporate loan from Qatar National Bank, to be settled in 12 monthly installments starting March 2025, with a 15% reduction in the outstanding amount if all payments are made on time."
1. Parties: Identification of the lender and borrower, including full legal names and addresses
2. Background: Recitals detailing the original loan agreement, current outstanding amount, and parties' intention to settle
3. Definitions: Definitions of key terms used throughout the agreement
4. Acknowledgment of Debt: Confirmation of the outstanding amount and borrower's acknowledgment of the debt
5. Settlement Terms: Details of the agreed settlement amount and any discount from the original debt
6. Payment Terms: Schedule of payments, payment method, and bank account details
7. Representations and Warranties: Statements by both parties regarding their capacity and authority to enter into the agreement
8. Release and Discharge: Terms of release upon completion of settlement payments
9. Confidentiality: Obligations regarding confidentiality of the settlement terms
10. Governing Law and Jurisdiction: Confirmation of Qatar law as governing law and jurisdiction for disputes
11. Notices: Process for serving notices under the agreement
12. Entire Agreement: Confirmation that this agreement supersedes all previous agreements regarding the settlement
13. Execution: Signature blocks and execution formalities
1. Security Arrangements: Required if any existing security is to be maintained or new security is being provided
2. Multiple Creditors: Required if there are multiple creditors involved in the settlement
3. Sharia Compliance: Specific provisions confirming compliance with Sharia principles, if required by the parties
4. Default Provisions: Consequences of default under the settlement agreement
5. Tax Provisions: Required if there are tax implications from the settlement
6. Assignment: Required if either party needs the right to assign their rights under the agreement
7. Force Majeure: Required if parties want specific provisions for unforeseen circumstances affecting performance
1. Schedule 1 - Original Loan Documentation: Copies of the original loan agreement and related documents
2. Schedule 2 - Payment Schedule: Detailed schedule of settlement payments including dates and amounts
3. Schedule 3 - Calculation of Settlement Amount: Breakdown of the settlement amount including any discounts applied
4. Schedule 4 - Security Details: Details of any security arrangements being maintained or released
5. Schedule 5 - Release Documentation: Form of release to be provided upon completion of settlement
6. Appendix A - Bank Account Details: Bank account details for settlement payments
7. Appendix B - Power of Attorney: If applicable, power of attorney documentation for signatories
Authors
Banking & Financial Services
Islamic Banking
Real Estate
Construction
Manufacturing
Retail
Healthcare
Education
Hospitality
Trading & Commerce
Oil & Gas
Technology
Legal
Finance
Credit Management
Risk & Compliance
Treasury
Debt Recovery
Islamic Banking
Corporate Banking
Retail Banking
Collections
Documentation
Chief Financial Officer
Finance Director
Credit Manager
Legal Counsel
Compliance Officer
Risk Manager
Treasury Manager
Debt Recovery Specialist
Banking Manager
Settlement Officer
Corporate Lawyer
Financial Controller
Loan Officer
Collections Manager
Islamic Banking Specialist
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