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Loss Share Agreement
"Need a Loss Share Agreement under Singapore law between our bank and a hedge fund partner to share potential losses on a USD 50M investment portfolio, with an 80:20 loss split and quarterly settlement periods starting from March 2025."
1. Parties: Identification and details of all contracting parties
2. Background: Context and purpose of the loss share arrangement
3. Definitions: Key terms and their meanings as used in the agreement
4. Loss Share Structure: Core mechanics of how losses will be shared between parties
5. Loss Calculation Methodology: Detailed explanation of how losses are calculated and verified
6. Payment Mechanics: Procedures and timing for loss share payments
7. Representations and Warranties: Standard assurances from each party
8. Term and Termination: Duration of agreement and termination provisions
1. Collateral Requirements: Security arrangements for loss share obligations, used when parties require additional security
2. Regulatory Compliance: Specific regulatory obligations applicable when regulated entities are involved
3. Third Party Rights: Rights of external parties to the agreement, included when third parties have enforcement rights
1. Loss Calculation Formula: Detailed mathematical formula for loss calculations
2. Form of Loss Notice: Template for notifying losses under the agreement
3. Payment Procedures: Detailed payment mechanics and account details
4. Eligible Asset Categories: List of assets covered by the loss share arrangement
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