Deed Of Accession Loan Agreement for India

Deed Of Accession Loan Agreement Template for India

A legal instrument governed by Indian law that enables a new party to join or 'accede' to an existing loan agreement, thereby becoming bound by its terms and conditions. The document establishes the rights, obligations, and liabilities of the acceding party in relation to the existing loan arrangement, while ensuring compliance with Indian banking regulations, contract law, and registration requirements. It includes provisions for representations, warranties, security arrangements, and enforcement mechanisms, all structured within the framework of Indian legal requirements and commercial lending practices.

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What is a Deed Of Accession Loan Agreement?

A Deed of Accession Loan Agreement is utilized when a new party needs to join an existing loan arrangement in India, whether as an additional borrower, lender, or guarantor. This document is crucial in syndicated lending, refinancing arrangements, or corporate restructuring scenarios where the original loan agreement needs to accommodate new participants. The deed must comply with Indian contract law, banking regulations, and registration requirements, including the Banking Regulation Act, 1949, and the Registration Act, 1908. It typically contains detailed provisions regarding the acceding party's obligations, representations, warranties, and security arrangements. The document is particularly important in ensuring seamless expansion of existing credit facilities while maintaining the integrity of the original loan structure and security arrangements.

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

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

2. Background: Recitals explaining the existing loan agreement and the purpose of the accession

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 existing loan agreement and assumes rights/obligations

5. Representations and Warranties: Statements of fact and assurances given by the acceding party

6. Conditions Precedent: Documents and conditions that must be satisfied before the accession becomes effective

7. Covenants: Ongoing obligations and promises of the acceding party

8. Security Confirmation: Confirmation of existing security arrangements and their application to the acceding party

9. Fees and Expenses: Details of any fees payable in connection with the accession

10. Notices: Communication procedures and contact details for all parties

11. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes

12. Execution: Formal execution blocks for all parties with necessary attestation requirements

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

1. Additional Security: Required if new security is being provided by the acceding party

2. Guarantee Provisions: Needed if the acceding party is joining as a guarantor

3. Limitation of Liability: May be included if specific limitations on the acceding party's liability are negotiated

4. Tax Provisions: Required if specific tax arrangements or gross-up provisions apply to the acceding party

5. Currency Provisions: Needed if the acceding party will make payments in a different currency

6. Step-In Rights: Required if specific intervention rights are granted to certain parties

7. Subordination Provisions: Needed if the acceding party's rights need to be subordinated to existing parties

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

1. Original Loan Agreement: Copy or summary of the existing loan agreement being acceded to

2. Acceding Party Details: Complete corporate or individual details of the acceding party

3. Conditions Precedent Documents: List of all required documents and conditions to be satisfied

4. Form of Effective Date Certificate: Template certificate confirming satisfaction of conditions precedent

5. Security Documents: Details or copies of any security arrangements

6. Fee Schedule: Breakdown of any fees payable in connection with the accession

7. Contact Details: Complete contact information for all parties for notices

8. Required Confirmations: Forms of any required corporate or regulatory confirmations

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

India

Publisher

Genie AI

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing

Infrastructure

Technology

Healthcare

Energy & Utilities

Telecommunications

Retail & Consumer

Agriculture

Mining & Natural Resources

Transportation & Logistics

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Transaction Management

Commercial

Company Secretarial

Risk Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Finance Manager

Treasury Manager

Company Secretary

Risk Manager

Compliance Officer

Banking Relationship Manager

Credit Manager

Transaction Manager

Senior Loan Officer

Corporate Banking Officer

Legal Director

Financial Controller

Commercial Director

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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