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Debenture Loan Agreement
"Need a Debenture Loan Agreement for a $5 million facility with ABC Bank Ltd as lender, secured against our manufacturing equipment and property at 123 Industry Road, with quarterly repayments starting March 2025 and a 5-year term."
1. Parties: Identification of lender and borrower with full legal details
2. Background: Context of the loan and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Loan Amount and Purpose: Specification of loan amount and intended use
5. Interest Rate and Calculation: Interest rate terms and calculation methodology
6. Repayment Terms: Schedule and method of repayment
7. Security: Details of assets charged as security
8. Representations and Warranties: Standard declarations by borrower
9. Events of Default: Circumstances constituting default
10. Enforcement Rights: Lender's rights upon default
1. Guarantees: Additional security provisions when third-party guarantees are involved
2. Insurance Requirements: Requirements for insuring secured assets when specific assets need insurance coverage
3. Subordination Provisions: Priority of debt provisions when multiple creditors are involved
1. Schedule 1 - Asset Schedule: Detailed list of secured assets
2. Schedule 2 - Repayment Schedule: Detailed payment dates and amounts
3. Schedule 3 - Conditions Precedent: List of conditions to be satisfied before drawdown
4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursement
5. Schedule 5 - Security Documents: List of additional security documentation
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