Warehouse Loan Agreement for Australia

Warehouse Loan Agreement Template for Australia

This document is an Australian law-governed Warehouse Loan Agreement that establishes a financing arrangement where the lender provides funding secured against goods stored in a warehouse facility. The agreement covers key aspects including facility terms, security arrangements, operational requirements, monitoring provisions, and enforcement rights. It incorporates relevant Australian legislation including the Personal Property Securities Act 2009 and applicable warehousing regulations. The document provides comprehensive coverage of rights and obligations of all parties, including detailed provisions for warehouse operations, security maintenance, and default scenarios.

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What is a Warehouse Loan Agreement?

The Warehouse Loan Agreement is a specialized financing document used when a borrower requires funding secured against inventory or goods stored in warehouse facilities. This type of agreement is particularly relevant in Australia where businesses often require working capital finance backed by their inventory. The document combines elements of traditional loan documentation with specific provisions required under Australian law, including PPSA requirements and warehouse regulations. A Warehouse Loan Agreement typically includes detailed provisions regarding the management and monitoring of the warehoused collateral, specific security arrangements, operational requirements for the warehouse, and enforcement mechanisms. It is commonly used in trading, manufacturing, and import/export businesses where significant inventory is maintained.

What sections should be included in a Warehouse Loan Agreement?

1. Parties: Identification of the lender, borrower, and any security trustee

2. Background: Context of the warehouse loan facility and its purpose

3. Definitions and Interpretation: Defined terms, interpretation rules, and calculation conventions

4. The Facility: Loan amount, purpose, availability period, and drawdown conditions

5. Security Arrangements: Security over warehouse goods, PPSA provisions, and perfection requirements

6. Warehouse Operations: Requirements for storage, maintenance, and handling of secured goods

7. Representations and Warranties: Standard and transaction-specific representations by the borrower

8. Undertakings: General, financial, and warehouse-specific covenants

9. Conditions Precedent: Requirements to be satisfied before drawdown

10. Interest and Fees: Interest calculation, payment provisions, and facility fees

11. Insurance: Required insurance coverage for warehouse and goods

12. Events of Default: Circumstances constituting default and consequences

13. Enforcement: Lender's rights and remedies upon default

14. Changes to Parties: Assignment and transfer provisions

15. Administration: Notice requirements, calculations, and payment mechanics

16. General Provisions: Boilerplate clauses including governing law, jurisdiction, and severability

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

1. Guarantee: Terms of any guarantee provided by third parties

2. Multiple Warehouses: Additional provisions for loans secured by multiple warehouse locations

3. Priority Arrangements: Required when there are multiple secured parties or existing security interests

4. Environmental Provisions: Special requirements for storage of hazardous or environmentally sensitive goods

5. Tax Provisions: Detailed tax provisions if complex tax implications exist

6. Security Trustee Provisions: Required when a security trustee structure is used

7. Inventory Management: Specific requirements for tracking and managing inventory turnover

8. Custodian Arrangements: Terms relating to third-party warehouse operators or custodians

What schedules should be included in a Warehouse Loan Agreement?

1. Facility Particulars: Detailed terms of the facility including limits, interest rates, and fees

2. Conditions Precedent: Detailed list of required documents and conditions

3. Warehouse Requirements: Specific requirements for warehouse facilities and operations

4. Form of Drawdown Notice: Template for requesting loan disbursements

5. Secured Property Description: Detailed description of warehoused goods and storage locations

6. Insurance Requirements: Specific insurance requirements and minimum coverage

7. Compliance Certificate: Template for periodic compliance certification

8. Reporting Requirements: Forms and templates for required reports

9. Security Documents: List and copies of related security documents

10. Operating Procedures: Detailed warehouse operating procedures and requirements

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
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Agriculture

Mining

Construction

Import/Export

Automotive

Consumer Goods

Commodities Trading

Food and Beverage

Pharmaceuticals

Electronics

Textiles

Relevant Teams

Legal

Finance

Treasury

Operations

Risk Management

Compliance

Credit

Commercial

Trade Finance

Warehouse Operations

Security

Facilities Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Commercial Director

Risk Manager

Operations Manager

Warehouse Manager

Legal Counsel

Compliance Officer

Credit Manager

Security Officer

Facility Manager

Contract Administrator

Finance Manager

Corporate Banker

Trade Finance Manager

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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