Loan Extension Agreement for Malta

Loan Extension Agreement Template for Malta

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Loan Extension Agreement

"I need a Loan Extension Agreement under Maltese law for a €2.5M commercial property loan originally due in March 2025, extending it for 24 months with the same interest rate and security arrangements, where the borrower is a real estate development company."

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What is a Loan Extension Agreement?

The Loan Extension Agreement is utilized when parties to an existing loan arrangement wish to extend the loan's maturity date under Maltese law. This document is essential when the borrower requires additional time for repayment but is otherwise compliant with loan terms, and the lender is willing to extend the facility. It details the extended repayment period, any modified terms such as interest rates or payment schedules, and ensures continued validity of existing security arrangements. The agreement must comply with Maltese banking regulations, the Civil Code, and if applicable, consumer protection laws. It's particularly important in commercial lending scenarios where flexibility in loan terms may be needed due to business cycles or project timelines.

What sections should be included in a Loan Extension Agreement?

1. Parties: Identification of the lender and borrower, including their full legal names, registration details, and addresses

2. Background: Recitals detailing the original loan agreement, its key terms, and the reason for extension

3. Definitions: Definitions of key terms, including references to definitions in the original loan agreement that remain applicable

4. Extension of Loan: Clear statement of the new maturity date and terms of the extension

5. Continuation of Original Terms: Confirmation that all other terms of the original loan agreement remain in full force and effect

6. Representations and Warranties: Updated representations from the borrower regarding their financial condition and ability to repay

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

8. Security Confirmation: Confirmation that existing security remains in place and extends to the modified terms

9. Costs and Expenses: Allocation of costs related to the extension agreement

10. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction for disputes

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

1. Interest Rate Adjustment: Required if the interest rate is being modified as part of the extension

2. Additional Security: Required if new security is being provided as part of the extension

3. Payment Schedule Modification: Required if the payment schedule or installment amounts are being modified

4. Financial Covenants: Required if new or modified financial covenants are being introduced

5. Consent of Guarantors: Required if there are guarantors who need to consent to the extension

6. Additional Conditions: Required if new conditions or obligations are being imposed on the borrower

7. Fee Provisions: Required if an extension fee or new fees are being charged

8. Cross-Default Provisions: Required if there are other loan agreements that need to be referenced or modified

What schedules should be included in a Loan Extension Agreement?

1. Schedule 1 - Original Loan Agreement: Copy or key details of the original loan agreement being extended

2. Schedule 2 - Updated Repayment Schedule: Detailed schedule of repayment dates and amounts under the extended term

3. Schedule 3 - Security Documents: List of existing security documents that remain in force

4. Schedule 4 - Conditions Precedent Documents: List of documents required to be delivered before the extension becomes effective

5. Appendix A - Form of Compliance Certificate: Updated form for periodic compliance certification if required

6. Appendix B - Guarantor Consent Forms: Forms for guarantors to formally consent to the extension 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

Relevant legal definitions
Relevant Industries

Banking

Financial Services

Real Estate

Construction

Manufacturing

Retail

Hospitality

Healthcare

Technology

Transportation

Energy

Agriculture

Professional Services

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Credit Administration

Corporate Secretariat

Commercial Banking

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Risk Manager

Credit Manager

Banking Relationship Manager

Loan Officer

Corporate Secretary

Financial Controller

Account Manager

Business Development Manager

Commercial Director

Industries
Teams

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