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Amendment To Loan Agreement Template for South Africa

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Key Requirements PROMPT example:

Amendment To Loan Agreement

"Need an Amendment to Loan Agreement to modify the interest rate from variable to fixed at 12.5% and extend the loan maturity date to March 15, 2025, for our existing R20 million corporate loan facility with Standard Bank."

Document background
An Amendment to Loan Agreement is utilized when parties to an existing loan agreement need to modify specific terms without creating an entirely new agreement. This document is particularly important in the South African context, where it must comply with the National Credit Act, Financial Intelligence Centre Act, and other local banking regulations. It typically includes details of the original agreement, specific amendments being made, confirmations of unchanged terms, and any necessary regulatory compliance statements. The amendment may address changes to interest rates, repayment terms, security arrangements, financial covenants, or other key provisions. This document type is crucial for maintaining legal certainty while adapting financing arrangements to changing business needs or economic conditions.
Suggested Sections

1. Parties: Identification of all parties to the amendment, including the original lender(s) and borrower(s)

2. Background: Recitals explaining the original loan agreement details, reason for amendment, and confirmation that parties agree to the modifications

3. Definitions: Definitions of terms used in the amendment, including reference to original agreement definitions and any new terms

4. Amendment Effective Date: Specifies when the amendments take effect

5. Amendments to Original Agreement: Detailed specifications of which clauses are being amended and how

6. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain unchanged and in full force and effect

7. Representations and Warranties: Updated or reaffirmed representations and warranties of the parties

8. Costs and Expenses: Allocation of costs related to the preparation and execution of the amendment

9. Governing Law and Jurisdiction: Confirmation of the governing law and jurisdiction (South African law)

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Conditions Precedent: Required when amendments are subject to certain conditions being met before becoming effective

2. Security Confirmation: Used when existing security needs to be confirmed or modified

3. Additional Parties: Required when new parties are being added to the agreement

4. Fee Provisions: Included when amendment involves changes to fee structures or new amendment fees

5. Consents and Waivers: Required when third-party consents are needed or past defaults are being waived

6. Tax Provisions: Included when amendment has tax implications requiring specific provisions

7. Registration Requirements: Required when amendment needs to be registered with authorities (e.g., under National Credit Act)

Suggested Schedules

1. Schedule of Amendments: Detailed list of specific amendments to the original agreement, often in table format showing original vs. amended text

2. Updated Repayment Schedule: If payment terms are modified, new repayment schedule with updated amounts and dates

3. Modified Financial Covenants: If financial covenants are being amended, detailed specifications of new requirements

4. Updated Security Details: If security arrangements are modified, details of updated security structure

5. Conditions Precedent Checklist: List of conditions that must be satisfied before amendment becomes effective

6. Required Consents: Copies of third-party consents obtained for the amendment

7. Amended Facility Terms: Comprehensive overview of modified facility terms if loan amounts or terms are changed

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses








































Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Mining and Resources

Retail

Agriculture

Technology

Healthcare

Construction

Transportation and Logistics

Energy and Utilities

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Commercial

Executive Leadership

Banking Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Credit Manager

Compliance Officer

Risk Manager

Treasury Manager

Company Secretary

Banking Relationship Manager

Loan Officer

Financial Controller

Managing Director

Chief Executive Officer

Commercial Director

Industries






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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