Loan Master Agreement for Malta

Loan Master Agreement Template for Malta

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Loan Master Agreement

"I need a Loan Master Agreement under Maltese law for a syndicated facility with multiple currency options (EUR, USD, GBP) that includes provisions for future syndication and transferability, to be completed by March 2025."

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What is a Loan Master Agreement?

The Loan Master Agreement serves as the primary documentation framework for establishing and governing lending relationships under Maltese law. This document is typically used when parties anticipate multiple loan transactions or ongoing lending arrangements, providing a standardized set of terms and conditions that will apply to all subsequent loan facilities. It comprehensively addresses all aspects of the lending relationship, including facility terms, conditions precedent, utilization mechanics, interest provisions, repayment terms, representations, warranties, and covenants. The agreement is designed to comply with Maltese banking regulations and financial services laws, while also incorporating relevant EU requirements. It provides flexibility to accommodate various types of lending facilities while maintaining a consistent legal framework for all transactions between the parties.

What sections should be included in a Loan Master Agreement?

1. Parties: Identification of the lender and borrower, including their registered addresses and company details

2. Background: Context of the agreement and the parties' intention to enter into loan transactions

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. The Facility: Core terms of the lending facility, including facility type, purpose, and commitment amount

5. Conditions Precedent: Documents and conditions required before any utilization can occur

6. Utilization: Process and requirements for requesting and making loans under the facility

7. Interest: Interest calculation, periods, rates, and payment provisions

8. Repayment: Terms for repayment of loans, including scheduled payments and prepayment provisions

9. Fees: All fees payable under the agreement, including arrangement, commitment, and other fees

10. Tax Gross Up and Indemnities: Provisions for tax-related payments and indemnities

11. Representations and Warranties: Standard representations and warranties given by the borrower

12. Information Undertakings: Borrower's obligations to provide financial and other information

13. General Undertakings: Borrower's general operational and financial covenants

14. Events of Default: Circumstances constituting default and their consequences

15. Changes to Parties: Provisions for transfers, assignments, and changes to lending parties

16. Administration: Administrative provisions including calculations, notices, and payments

17. Governing Law and Jurisdiction: Choice of Maltese law and jurisdiction provisions

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

1. Security: Required when the facility is secured, detailing security arrangements and enforcement rights

2. Guarantee: Include when there are guarantors providing support for the borrower's obligations

3. Increased Costs: Provisions dealing with regulatory changes affecting lender's costs, particularly relevant for regulated lenders

4. Market Disruption: Include for facilities with floating interest rates to address market disruption events

5. Multi-currency Provisions: Required for facilities offering multiple currency options

6. Accordion Feature: Optional provision allowing for future increase in facility amount

7. Syndication Provisions: Required for facilities that may be syndicated to multiple lenders

8. EU Bail-in Provisions: Required when any party is subject to EU banking regulations

9. ESG Provisions: Include when incorporating environmental, social, and governance requirements

What schedules should be included in a Loan Master Agreement?

1. Form of Utilization Request: Standard form for requesting loans under the facility

2. Conditions Precedent Documents: Detailed list of required conditions precedent documents

3. Form of Transfer Certificate: Standard form for transferring loans or commitments

4. Form of Compliance Certificate: Template for periodic compliance certification

5. Calculation of Interest Rate: Detailed methodology for interest calculations

6. Repayment Schedule: Schedule of repayment dates and amounts if term loan

7. Form of Accession Deed: Standard form for new parties joining the agreement

8. Financial Covenants: Detailed financial covenant calculations and definitions

9. Contact Details: Administrative and notice details for all parties

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
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Relevant Industries

Banking

Financial Services

Investment Services

Real Estate

Manufacturing

Retail

Healthcare

Technology

Maritime

Gaming

Tourism and Hospitality

Energy

Infrastructure

Transportation

Construction

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Banking

Credit

Operations

Corporate Finance

Documentation

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Corporate Banker

Relationship Manager

Credit Risk Manager

Legal Counsel

Compliance Officer

Financial Controller

Corporate Finance Manager

Debt Finance Manager

Transaction Manager

Banking Operations Manager

Credit Analyst

Finance Manager

Company Secretary

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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