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Loan Market Agreement Template for Singapore

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Loan Market Agreement

"Need a Loan Market Agreement under Singapore law for a secured term loan facility of SGD 50 million to finance the construction of a commercial property, with quarterly repayments starting March 2025 and including provisions for additional security and guarantees from parent company."

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What is a Loan Market Agreement?

The Loan Market Agreement is a fundamental document used in Singapore's commercial lending landscape, essential for structuring and documenting credit facilities between financial institutions and borrowers. This agreement type follows established market standards while incorporating Singapore-specific legal and regulatory requirements. It serves as the primary contract governing the relationship between lenders and borrowers, detailing all aspects of the loan facility including drawdown mechanics, interest calculations, repayment terms, and security arrangements. The document is particularly crucial in Singapore's role as a major financial hub, where it facilitates both domestic and cross-border lending transactions while ensuring compliance with MAS guidelines and local banking regulations.

What sections should be included in a Loan Market Agreement?

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the loan agreement

3. Definitions: Key terms and their meanings used throughout the agreement

4. Facility Details: Loan amount, purpose, and facility type

5. Interest and Fees: Interest calculation, payment terms, and applicable fees

6. Repayment Terms: Schedule and mechanics of repayment

7. Representations and Warranties: Statements of fact and assurances from borrower

8. Covenants: Ongoing obligations of the borrower

9. Events of Default: Circumstances constituting default and consequences

10. Governing Law: Application of Singapore law and jurisdiction

What sections are optional to include in a Loan Market Agreement?

1. Security: Details of any collateral or security arrangements (used when loan is secured)

2. Guarantees: Terms of any guarantees provided (used when third-party guarantees are involved)

3. Syndication Provisions: Terms for multiple lenders (used for syndicated loans)

4. Assignment and Transfer: Rules for transferring loan participations (used when transfer rights are contemplated)

What schedules should be included in a Loan Market Agreement?

1. Schedule 1 - Conditions Precedent: List of documents and conditions required before drawdown

2. Schedule 2 - Form of Drawdown Notice: Template for borrower to request loan disbursement

3. Schedule 3 - Repayment Schedule: Detailed payment dates and amounts

4. Schedule 4 - Security Documents: Forms of security documentation (if applicable)

5. Schedule 5 - Form of Transfer Certificate: Template for transferring loan participations (if applicable)

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

Relevant legal definitions

























































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Industries

Banking Act (Cap. 19): Primary legislation governing banking business and lending activities in Singapore, including licensing requirements for lenders and restrictions on credit facilities

Moneylenders Act (Cap. 188): Regulates moneylending activities, including licensing requirements, interest rate caps and restrictions for moneylenders

Securities and Futures Act (Cap. 289): Governs securities-based lending and derivative transactions, relevant if the loan involves any securities or derivatives

Contracts Act (Cap. 53): Provides the fundamental principles of contract formation, enforcement, and remedies under Singapore law

Civil Law Act (Cap. 43): Contains provisions regarding interest rates and rules on contractual capacity in Singapore

Bankruptcy Act (Cap. 20): Governs bankruptcy proceedings, creditor rights and remedies in default scenarios

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore including Notice 635 on lending limits, responsible lending practices, and anti-money laundering requirements

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data, including requirements for handling borrower information

Companies Act (Cap. 50): Relevant for corporate borrowers, including corporate authority requirements and company regulations

Consumer Protection (Fair Trading) Act: Provides consumer protection measures and fair trading requirements, particularly relevant if consumer lending is involved

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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