Deed Of Accession Loan Agreement for Australia

Deed Of Accession Loan Agreement Template for Australia

A formal deed governed by Australian law that facilitates the joining of a new party to an existing loan agreement. The document sets out the terms and conditions under which the acceding party becomes bound by and assumes rights and obligations under the original loan agreement. It includes specific provisions required under Australian financial regulations and state-specific property laws, ensuring compliance with both federal and state requirements for deed execution and financial transactions. The document addresses representations, warranties, conditions precedent, and necessary confirmations from existing parties.

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What is a Deed Of Accession Loan Agreement?

The Deed of Accession Loan Agreement is a crucial document used in Australian financial transactions when a new party needs to join an existing loan arrangement. It's commonly utilized in situations such as syndicated lending, refinancing, or corporate restructuring where additional parties need to become bound by the terms of an existing loan agreement. The deed must comply with Australian federal regulations including the National Consumer Credit Protection Act and state-specific property laws, while also meeting the formal requirements for deed execution. It contains detailed provisions covering the accession process, assumptions of rights and obligations, conditions precedent, and necessary party confirmations. This document type is particularly important in corporate and commercial lending scenarios where loan participants may change over time, requiring a formal mechanism for new parties to join the arrangement.

What sections should be included in a Deed Of Accession Loan Agreement?

1. Parties: Identifies all parties including the existing lender(s), borrower(s), security providers, and the acceding party

2. Background: Recitals explaining the existing loan agreement, reason for accession, and context of the deed

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including references to definitions in the original loan agreement

4. Accession: Core provisions detailing how the acceding party joins the loan agreement and assumes rights and obligations

5. Assumption of Rights and Obligations: Specifies which rights and obligations the acceding party is assuming under the original loan agreement

6. Representations and Warranties: Statements of fact and assurances from the acceding party regarding their capacity and authority

7. Conditions Precedent: Prerequisites that must be satisfied before the accession becomes effective

8. Confirmations: Existing parties' confirmation of the accession and continued validity of the loan agreement

9. Costs and Expenses: Allocation of costs related to the preparation and execution of the deed

10. Governing Law and Jurisdiction: Specifies Australian law as governing law and relevant jurisdiction for disputes

11. Execution: Formal execution blocks meeting requirements for a deed under Australian law

What sections are optional to include in a Deed Of Accession Loan Agreement?

1. Security Confirmation: Required if there are existing security arrangements that need to be confirmed or modified

2. Additional Facility: Include if the accession involves an increase in facility amount or new facility

3. Tax Provisions: Detailed tax clauses required if there are specific tax implications or requirements

4. Agent Provisions: Required if there is a facility agent or security trustee involved

5. Guarantee Provisions: Include if the acceding party is also providing guarantees

6. Foreign Party Provisions: Required if any party is foreign or if cross-border elements exist

7. PPSA Provisions: Detailed Personal Property Securities Act provisions if security interests are involved

What schedules should be included in a Deed Of Accession Loan Agreement?

1. Original Loan Agreement: Copy or reference to the original loan agreement being acceded to

2. Accession Requirements: Detailed list of conditions precedent and required documents

3. Form of Accession Notice: Template notice to be given upon completion of accession requirements

4. Updated Facility Details: Schedule showing updated loan amounts, parties, and commitments

5. Required Modifications: Any specific modifications to the original loan agreement required for the accession

6. Contact Details: Contact information for all parties including the acceding party

7. Security Details: List of security documents and confirmation of security arrangements if applicable

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking & Financial Services

Real Estate & Property

Infrastructure

Mining & Resources

Manufacturing

Retail

Healthcare

Technology

Agriculture

Construction

Energy

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit Administration

Commercial Banking

Loan Operations

Transaction Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Commercial Banking Manager

Credit Manager

Loan Officer

Risk Manager

Compliance Officer

Company Secretary

Transaction Manager

Debt Finance Manager

Relationship Manager

Financial Controller

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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