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Loan Agreement Between Lender Borrower And Guarantor for Singapore

Loan Agreement Between Lender Borrower And Guarantor Template for Singapore

A legally binding agreement governed by Singapore law that establishes the terms and conditions of a loan arrangement between three parties: the lender providing the funds, the borrower receiving the loan, and a guarantor who provides additional security by guaranteeing the borrower's obligations. The agreement details the loan amount, interest rates, repayment terms, guarantor's obligations, and consequences of default, all within the framework of Singapore's financial and contract laws.

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What is a Loan Agreement Between Lender Borrower And Guarantor?

The Loan Agreement Between Lender Borrower And Guarantor is a crucial legal document used in Singapore when a loan requires additional security through a guarantee. This agreement is particularly relevant when the borrower's creditworthiness alone may not satisfy the lender's requirements, necessitating a third-party guarantee. The document complies with Singapore's Moneylenders Act, Civil Law Act, and related financial regulations, providing comprehensive coverage of loan terms, guarantor obligations, and enforcement mechanisms. It's commonly used in both commercial and private lending scenarios, offering protection to all parties while ensuring compliance with Singapore's strict financial services regulations.

What sections should be included in a Loan Agreement Between Lender Borrower And Guarantor?

1. Parties: Identification of Lender, Borrower, and Guarantor with full legal names and addresses

2. Background: Context of the loan arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including defined terms under Singapore law

4. Loan Amount and Purpose: Specific amount being lent and its intended use

5. Interest Rate and Calculations: Interest rate, calculation method, and payment schedule in compliance with Singapore Moneylenders Act

6. Repayment Terms: Schedule, method, and conditions of repayment

7. Guarantor's Obligations: Scope and extent of guarantee, conditions for enforcement under Singapore Civil Law Act

8. Events of Default: Circumstances constituting default and consequences

9. Governing Law: Specification of Singapore law as governing law and jurisdiction

What sections are optional to include in a Loan Agreement Between Lender Borrower And Guarantor?

1. Security: Details of any collateral or security provided, including registration requirements under Singapore law

2. Insurance Requirements: Required insurance coverage for secured assets or borrower's life insurance requirements

3. Early Repayment: Terms and conditions for early loan settlement including any prepayment penalties

4. Assignment Rights: Rights to assign or transfer the loan under Singapore law

What schedules should be included in a Loan Agreement Between Lender Borrower And Guarantor?

1. Repayment Schedule: Detailed payment dates and amounts with amortization table

2. Security Details: Detailed description of any security/collateral including valuation reports

3. Interest Calculation Examples: Illustrations of interest calculations as required by Singapore regulations

4. Form of Notice: Template for formal notices between parties

5. Guarantor's Statement: Formal declaration of Guarantor's obligations and financial position

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

Singapore

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses

























Industries

Moneylenders Act 2008: Primary legislation governing money lending in Singapore. Regulates maximum interest rates, loan terms, and licensing requirements for moneylenders. Essential if the lender is a licensed moneylender.

Civil Law Act (Cap. 43): Foundational legislation governing civil law matters in Singapore, including contract formation, enforcement, and provisions relating to guarantees and securities.

Banking Act (Cap. 19): Regulates banking institutions and their lending practices. Relevant if the lender is a financial institution, covering aspects of loans, interest rates, and security requirements.

Contract Law (Amendment) Act 2012: Updates to contract law principles affecting formation, terms, and enforcement of contracts including loan agreements in Singapore.

Usury (Money-Lending) Act: Legislation controlling usurious interest rates and unfair lending practices in Singapore.

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in loan agreements and related documentation.

Unfair Contract Terms Act: Protects parties from unfair terms in contracts, including loan agreements, and sets boundaries for contractual fairness.

Consumer Protection (Fair Trading) Act: Ensures fair trading practices and protects borrowers from unfair practices in lending transactions.

Bankruptcy Act: Relevant for default scenarios and enforcement of loan agreements, outlining procedures and protections in case of borrower bankruptcy.

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore governing lending practices and financial institution behavior.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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