🤳 Debenture agreement

About this category

A debenture agreement is a legal contract between a borrower and a lender that outlines the terms of a loan. The agreement includes the amount of the loan, the interest rate, the repayment schedule, and any collateral that is required.

Note: Working on a legal issue? Try our AI Legal Assistant - It's free while in beta 🚀

Use our legal assistant

🤳 Debenture agreement

templates

Standard Debenture

A Standard Debenture under UK law is a legal template designed to establish the terms and conditions for a specific type of loan, commonly known as a debenture. It outlines the agreement between a company (the borrower) and a lender, typically a bank or financial institution, regarding the loan amount, repayment terms, interest rates, and other essential provisions.

This legal document ensures that both parties understand and comply with their respective obligations and rights throughout the loan duration. It typically includes clauses related to the use of funds lent, charges on the borrower's assets, repayment schedule, insurance requirements, and events of default.

The Standard Debenture template also safeguards the lender's position by granting them specific rights, such as the ability to appoint a receiver or administrator, or to enforce security over the borrower's assets, in case of default or breach of the terms. Additionally, it may establish a fixed or floating charge against the company's assets, providing security to the lender in the event of insolvency or liquidation.

This legal template serves as a standardized framework for both parties to negotiate the terms of the loan and ensures compliance with UK laws and regulations regarding debentures. Companies seeking borrowing options or lenders wanting to secure their loan investments can utilize this template to establish a clear and legally binding agreement that protects their interests.
Contract template sketch
2
An outline stencil of a pencil to represent the number of uses this contract template has had.
6
Share icon, to represent the number of times this template has been shared by Genie AI users
2

Associated business activities

Raise debenture debt

When a company wants to raise money through debt, one option is to issue a debenture. A debenture is a type of debt instrument that is not secured by collateral and typically has a longer term than other debt instruments. Debentures can be issued by companies, governments, or other entities. One reason why a company might choose to issue a debenture is that it can be easier to obtain financing than with other types of loans. Additionally, debentures typically have lower interest rates than other types of loans. Lastly, debentures can be a more flexible form of financing, which can be helpful for companies that have irregular cash flows.