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Term Loan Agreement for Singapore

Term Loan Agreement Template for Singapore

A Term Loan Agreement under Singapore law is a legally binding contract between a lender and borrower for a fixed-term loan with specified repayment schedule. The agreement outlines the loan amount, interest rate, repayment terms, security (if any), and events of default. It incorporates Singapore's banking regulations and MAS guidelines, providing a comprehensive framework for both parties' rights and obligations throughout the loan term.

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Term Loan Agreement

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What is a Term Loan Agreement?

The Term Loan Agreement is a crucial financing document used when a borrower requires funding for a specific period with structured repayment terms. Under Singapore law, this agreement must comply with the Banking Act, MAS regulations, and other relevant financial legislation. It typically includes detailed provisions on drawdown conditions, interest calculations, repayment schedules, representations and warranties, and events of default. This document is particularly important in Singapore's financial hub context, where it facilitates various commercial and corporate financing arrangements while ensuring regulatory compliance.

What sections should be included in a Term Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Context of the loan arrangement and purpose

3. Definitions: Key terms used throughout the agreement

4. Facility: Loan amount, purpose, and availability

5. Interest: Interest rate, calculation method, and payment terms

6. Repayment: Repayment schedule and terms

7. Representations and Warranties: Borrower's statements about its status and capacity

8. Events of Default: Circumstances constituting default and consequences

9. Governing Law and Jurisdiction: Applicable law and dispute resolution forum

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

1. Security: Details of any collateral or guarantees - used when loan is secured

2. Insurance: Required insurance coverage - used when specific insurance is required

3. Financial Covenants: Financial ratios and requirements - used for corporate borrowers

4. Change of Control: Provisions regarding ownership changes - used for corporate borrowers

What schedules should be included in a Term Loan Agreement?

1. Repayment Schedule: Detailed payment dates and amounts

2. Conditions Precedent: List of documents and conditions required before drawdown

3. Form of Drawdown Notice: Template for requesting loan disbursement

4. Security Documents: Forms of security documentation if applicable

5. Fee Schedule: Breakdown of applicable fees and charges

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

Financing Agreement

Cost

Free to use
Relevant legal definitions



































Clauses
































Industries

Banking Act (Cap. 19): Primary legislation that regulates banking business and financial institutions in Singapore, including provisions on lending limits and restrictions

Moneylenders Act (Cap. 188): Regulates moneylending activities in Singapore, particularly relevant if the lender is not a licensed bank

Securities and Futures Act (Cap. 289): Applicable when the loan is secured by securities, governing the creation and enforcement of security interests

Contracts Act (Cap. 53): Fundamental legislation governing contract formation, validity, and enforcement in Singapore

MAS Guidelines: Regulatory guidelines including Notice 612 on Credit Risk Management and Guidelines on Fair Lending Practices issued by the Monetary Authority of Singapore

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in Singapore, relevant for handling borrower's information

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

Consumer Protection (Fair Trading) Act: Provides protection for consumers in Singapore, applicable if the borrower is a consumer rather than a business entity

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

Companies Act (Cap. 50): Regulates corporate borrowing powers, financial assistance provisions, and other aspects of corporate lending when the borrower is a company

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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