Loan And Guarantee Agreement for Ireland

Loan And Guarantee Agreement Template for Ireland

A comprehensive legal document governed by Irish law that combines a loan agreement with a guarantee arrangement. It establishes the terms and conditions under which a lender provides financial accommodation to a borrower, supported by a guarantee from a third party. The agreement complies with Irish banking regulations, consumer protection laws, and the requirements of the Central Bank of Ireland. It includes detailed provisions for loan disbursement, repayment terms, interest calculations, guarantor obligations, enforcement mechanisms, and default remedies, all structured to ensure enforceability under Irish law.

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What is a Loan And Guarantee Agreement?

The Loan and Guarantee Agreement is a fundamental financing document used when a borrower requires funding with additional security provided through a third-party guarantee. This document is particularly relevant in the Irish market where specific legal requirements govern both lending and guarantee arrangements. It combines two essential elements: the primary loan agreement detailing the lending terms and the guarantee provisions establishing the guarantor's obligations. The agreement must comply with Irish legislation including the Consumer Credit Act 1995, Central Bank regulations, and the Statute of Frauds (Ireland) 1695 for guarantee enforceability. It's commonly used in both corporate and personal lending scenarios, particularly where additional security is required beyond the borrower's own covenant.

What sections should be included in a Loan And Guarantee Agreement?

1. Parties: Identifies all parties to the agreement including lender, borrower, and guarantor(s)

2. Background: Sets out the context of the loan and guarantee arrangement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. The Loan: Details the loan amount, purpose, and conditions precedent to drawdown

5. Interest and Fees: Specifies interest rate(s), calculation methods, and any applicable fees

6. Repayment Terms: Sets out repayment schedule, payment methods, and prepayment provisions

7. The Guarantee: Details the guarantee obligations, scope, and limitations

8. Representations and Warranties: States the facts and assurances provided by borrower and guarantor

9. Covenants: Lists ongoing obligations of the borrower and guarantor during the loan term

10. Events of Default: Defines circumstances constituting default and consequences

11. Enforcement: Sets out lender's rights and remedies upon default

12. Payments and Calculations: Details payment mechanics, currency provisions, and calculation conventions

13. Changes to Parties: Covers assignment and transfer provisions

14. Notices: Specifies how formal communications between parties should be made

15. General Provisions: Contains boilerplate clauses including governing law and jurisdiction

What sections are optional to include in a Loan And Guarantee Agreement?

1. Security: Required if loan is secured by specific assets or collateral

2. Insurance: Required if specific insurance obligations are imposed on borrower

3. Information Undertakings: Detailed reporting requirements, typically included for corporate borrowers

4. Tax Gross-up and Indemnities: Required for cross-border loans or where tax implications need specific attention

5. Guarantee Limitations: Required when guarantee needs specific limitations under corporate law or financial assistance rules

6. Bank Accounts: Required when specific account arrangements or controls are needed

7. Subordination: Required when there are multiple creditors or intercreditor arrangements

8. Cost and Expenses: Detailed provisions about transaction costs and ongoing expenses

What schedules should be included in a Loan And Guarantee Agreement?

1. Conditions Precedent: List of documents and conditions required before loan drawdown

2. Form of Drawdown Request: Template for borrower to request loan disbursement

3. Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Form of Compliance Certificate: Template for periodic confirmation of compliance with loan terms

5. Security Documents: List and/or copies of related security documentation

6. Designated Account Details: Details of accounts for loan disbursement and repayment

7. Financial Covenants: Detailed financial ratios and calculations if applicable

8. Form of Transfer Certificate: Template for transferring loan participation if permitted

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

Ireland

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Technology

Healthcare

Agriculture

Energy

Infrastructure

Transportation

Hospitality

Education

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Commercial

Corporate Banking

Business Development

Company Secretariat

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Lawyer

Legal Counsel

Banking Lawyer

Credit Manager

Risk Manager

Relationship Manager

Loan Officer

Commercial Director

Business Development Manager

Company Secretary

Compliance Officer

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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