Modification Of Loan Agreement Template for England and Wales

A legal document governed by English and Welsh law that amends the terms of an existing loan agreement between parties. It formally documents changes to the original loan terms, which may include modifications to interest rates, repayment schedules, security arrangements, or other key provisions. The document ensures compliance with UK financial regulations while maintaining the legal enforceability of the modified agreement.

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What is a Modification Of Loan Agreement?

A Modification Of Loan Agreement is used when parties to an existing loan agreement need to change certain terms without creating an entirely new agreement. This document, governed by English and Welsh law, can modify various aspects including payment terms, interest rates, security arrangements, or loan duration. It's particularly relevant during financial restructuring, when borrowers face changed circumstances, or when market conditions necessitate loan term adjustments. The modification must comply with UK financial regulations and maintain the integrity of the original agreement while clearly documenting all changes.

What sections should be included in a Modification Of Loan Agreement?

1. Parties: Identification of lender and borrower with full legal names and addresses

2. Background: Details of original loan agreement and reason for modification

3. Definitions: Key terms used in the modification agreement

4. Modification Details: Specific changes to the original agreement terms

5. Effective Date: When the modifications take effect

6. Confirmation of Other Terms: Statement that all other original terms remain in effect

7. Execution: Signature blocks and execution details

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

1. Security Provisions: Changes to any security arrangements - include when loan is secured against assets

2. Guarantor Consent: Confirmation from any guarantors - include when original loan has guarantors

3. Conditions Precedent: Conditions that must be met before modification takes effect - include when specific conditions must be satisfied

What schedules should be included in a Modification Of Loan Agreement?

1. Schedule 1 - Modified Payment Schedule: New payment dates and amounts if payment terms are modified

2. Schedule 2 - Modified Interest Calculations: Updated interest calculations if interest terms are changed

3. Appendix A - Original Loan Agreement: Copy of the original loan agreement being modified

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use

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