The Subordinate Loan Agreement is a critical financing document used in South African corporate and financial transactions where certain debt needs to be contractually subordinated to other obligations. It is commonly used in group company financing structures, private equity transactions, or corporate rescues where layered debt is required. The agreement must comply with South African legislation, including the Companies Act 71 of 2008, and often requires consideration of exchange control regulations for cross-border transactions. The document typically includes detailed provisions on payment restrictions, trigger events, enforcement limitations, and the interaction with senior debt obligations. It's particularly relevant in cases of corporate restructuring, acquisition financing, or when companies need to establish clear priorities among different classes of debt.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Parties: Identification of the Lender, Borrower, and any other relevant parties
2. Background: Context of the loan, relationship between parties, and purpose of the subordination
3. Definitions and Interpretation: Key terms, including 'Senior Debt', 'Subordinated Debt', 'Trigger Events', and interpretation rules
4. The Loan: Amount, purpose, and basic terms of the subordinated loan
5. Subordination: Terms of subordination, ranking of debt, and restrictions on payment
6. Interest: Interest rate, calculation methods, payment dates, and default interest provisions
7. Repayment: Repayment terms, scheduled payments, and early repayment provisions
8. Conditions Precedent: Documents and conditions required before the loan becomes effective
9. Representations and Warranties: Standard and specific warranties from the Borrower
10. Covenants: Positive and negative undertakings by the Borrower
11. Events of Default: Circumstances constituting default and consequences
12. Payments: Payment mechanics, currency, and tax provisions
13. Assignment and Transfer: Restrictions on transfer of rights and obligations
14. Notices: Communication requirements and contact details
15. General Provisions: Boilerplate clauses including governing law, jurisdiction, etc.
1. Security: Include if any security is being provided for the subordinated loan, though this is uncommon
2. Guarantees: Include if there are any guarantors for the subordinated loan
3. Senior Creditor Rights: Include if senior creditors are party to the agreement or have specific rights
4. Turnover Provisions: Include if there are specific requirements for turning over unauthorized payments to senior creditors
5. Tax Gross-Up: Include if tax gross-up provisions are required
6. Exchange Control: Include for cross-border loans requiring South African Reserve Bank approval
7. Intercreditor Provisions: Include if relationship with other creditors needs to be regulated in this agreement
8. Business Rescue Provisions: Include specific provisions relating to South African business rescue proceedings if required
1. Loan Terms: Detailed commercial terms including amount, interest rate, and payment dates
2. Conditions Precedent Documents: List of required documents and conditions
3. Form of Drawdown Notice: Template for requesting disbursement of the loan
4. Repayment Schedule: If applicable, detailed schedule of repayment dates and amounts
5. Form of Compliance Certificate: Template for periodic confirmation of compliance with loan terms
6. Senior Debt: Description or list of senior debt to which this loan is subordinated
7. Corporate Authorizations: Required corporate approvals and resolutions
Relevant legal definitions
Clauses
Relevant Industries
Banking & Financial Services
Mining
Manufacturing
Real Estate & Property
Infrastructure Development
Telecommunications
Energy & Resources
Private Equity
Retail
Healthcare
Technology
Agriculture
Relevant Teams
Legal
Finance
Treasury
Risk Management
Corporate Finance
Compliance
Credit
Corporate Development
Company Secretariat
Investment
Relevant Roles
Chief Financial Officer
Finance Director
Treasury Manager
Corporate Finance Manager
Legal Counsel
Company Secretary
Financial Controller
Credit Manager
Risk Manager
Debt Finance Manager
Investment Manager
Corporate Development Officer
Restructuring Officer
Commercial Director
Find the exact document you need
Commercial Loan Contract
A South African law-governed agreement establishing terms for commercial lending between a financial institution and a business borrower.
find out more
Hire Purchase Agreement For Motorcycle
A South African law-governed agreement for the purchase of a motorcycle through installment payments, with ownership retention by the seller until full payment.
find out more
Hire Purchase Agreement Motor Vehicle
A South African law-compliant Hire Purchase Agreement for motor vehicles, governing installment-based vehicle purchases with retention of ownership until final payment.
find out more
Business Investment Loan Agreement
A South African law-governed agreement establishing terms and conditions for a business investment loan, including loan amount, interest rates, repayment terms, and security arrangements.
find out more
Auto Loan Promissory Note
A South African law-governed promissory note documenting a vehicle loan agreement with associated security and payment terms under the National Credit Act.
find out more
Facility Agreement Loan
A South African law-governed agreement establishing terms and conditions for a loan facility, including amount, interest, repayment terms, and security arrangements.
find out more
Computer Equipment Loan Agreement
A South African law-governed agreement for the temporary loan of computer equipment, establishing terms, conditions, and responsibilities between lender and borrower.
find out more
Sellers Finance Agreement
A South African legal agreement where the seller provides direct financing to the purchaser, combining sale and credit terms in compliance with local credit legislation.
find out more
Master Securities Loan Agreement
A South African law-governed agreement establishing terms for securities lending transactions between financial institutions, including collateral, margin, and regulatory requirements.
find out more
Hand Loan Agreement
A South African legal document formalizing a loan agreement between parties, typically for private lending, outlining loan terms and conditions in accordance with local law.
find out more
Co Financing Agreement
A South African law-governed agreement establishing terms and conditions for multiple lenders to jointly provide financing, including rights, obligations, and security arrangements.
find out more
Litigation Funding Agreement
A South African law-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, success fees, and risk allocation.
find out more
Owner Finance Vehicle Contract
A South African law-governed agreement combining vehicle sale and owner-provided financing terms, compliant with National Credit Act requirements.
find out more
Loan Facilitation Agreement
A South African law-governed agreement establishing terms between loan facilitators and lenders for loan origination and management services.
find out more
Royalty Financing Agreement
A South African law-governed agreement establishing terms for royalty-based financing, including payment terms, calculations, and regulatory compliance requirements.
find out more
Loan Participation Agreement
A South African law-governed agreement establishing terms for a participant's acquisition of an interest in a loan facility, including risk-sharing and administrative arrangements.
find out more
Overfacility Agreement
A South African law-governed agreement establishing terms for additional credit facilities provided by a financial institution to a borrower beyond existing arrangements.
find out more
Loan And Mortgage Agreement
A South African law-governed agreement establishing terms for a property-secured loan, combining lending provisions with mortgage security arrangements.
find out more
Hire Purchase Agreement For Car
A South African law-governed agreement for the purchase of a vehicle through installment payments, with the seller retaining ownership until full payment is made.
find out more
Film Financing Agreement
A South African law-governed agreement establishing terms and conditions for film production financing, including funding structure, security arrangements, and regulatory compliance requirements.
find out more
Vehicle Payment Plan Agreement
A South African law-compliant agreement governing the purchase of a vehicle through scheduled payments, detailing financial terms and ownership conditions.
find out more
Vehicle Finance Contract
A South African law-compliant agreement for vehicle financing between a credit provider and customer, outlining terms of credit, vehicle details, and security arrangements.
find out more
Undertaking Loan Agreement
South African-compliant loan agreement establishing terms for lending money, including repayment conditions and borrower undertakings.
find out more
Trade Finance Facility Agreement
A South African law-governed agreement establishing terms for trade finance facilities between a financial institution and corporate borrower, including facility structure, utilization, and compliance requirements.
find out more
Seller Financing Real Estate Contract
A South African law-compliant agreement for property sale with seller-provided financing, combining real estate transfer and credit provision terms.
find out more
Master Loan Agreement
A South African law-governed framework agreement establishing terms and conditions for ongoing lending arrangements between a financial institution and borrower.
find out more
Margin Loan Agreement
A South African law-governed agreement establishing terms for lending against securities as collateral, with provisions for margin maintenance and regulatory compliance.
find out more
Installment Loan Agreement
A South African law-governed agreement setting out terms for a loan repayable in installments, compliant with the National Credit Act.
find out more
Financial Support Agreement
A South African law-governed agreement establishing terms for financial support between parties, including payment terms, obligations, and compliance requirements.
find out more
Financial Assistance Agreement
South African law-governed agreement establishing terms for providing financial assistance, compliant with the National Credit Act and financial sector regulations.
find out more
Car Installment Agreement
A South African law-compliant agreement for vehicle purchase through installment payments, detailing financial terms, obligations, and ownership conditions.
find out more
Bridge Financing Agreement
South African law-governed agreement for temporary financing arrangements, typically used as interim funding until permanent financing is secured.
find out more
Auto Finance Contract
South African vehicle financing agreement that establishes terms for vehicle purchase financing under National Credit Act requirements.
find out more
Municipal Lease Purchase Agreement
A South African law-governed agreement enabling municipalities to acquire assets through lease-to-own arrangements while ensuring compliance with municipal finance regulations.
find out more
Vehicle Finance Agreement
A South African law-governed agreement setting out terms for vehicle financing, compliant with the National Credit Act and Consumer Protection Act.
find out more
Loan Payoff Agreement
A South African law-governed agreement that documents the terms and conditions for settling and terminating an existing loan, ensuring compliance with local credit legislation.
find out more
Mortgage Bond Agreement
A South African law-governed security agreement creating a mortgage bond over immovable property to secure a loan or other obligation.
find out more
Master Asset Finance Agreement
A South African law-governed master agreement establishing terms for multiple asset financing transactions between a finance provider and customer.
find out more
Development Credit Agreement
A South African law-governed agreement for providing credit facilities for development projects, incorporating local regulatory requirements and development objectives.
find out more
Small Credit Agreement
A South African law-governed credit agreement for small loans, compliant with the National Credit Act, documenting terms between a credit provider and consumer.
find out more
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)