Loan Novation Agreement for Malta
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Loan Novation Agreement
"I need a Loan Novation Agreement under Maltese law for the transfer of a €2.5M corporate loan from Bank of Valletta to HSBC Malta, scheduled for March 2025, with the original borrower being a local manufacturing company."
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1. Parties: Identifies all parties: Original Lender, New Lender, and Borrower, including full legal names and registered addresses
2. Background: Recitals explaining the existing loan agreement, the parties' intention to novate, and the purpose of the novation
3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules, including references to the Original Loan Agreement
4. Novation: Core clause effecting the novation, specifying the discharge of original obligations and creation of new obligations
5. Effective Date: Specifies when the novation takes effect and any timing considerations
6. New Lender's Undertakings: Commitments and warranties given by the new lender regarding the assumed obligations
7. Borrower's Acknowledgment and Consent: Borrower's formal acceptance of the novation and confirmation of continuing obligations
8. Security Preservation: Provisions maintaining or reinstating security interests under the new arrangement
9. Representations and Warranties: Standard representations from all parties regarding capacity, authority, and enforceability
10. Costs and Expenses: Allocation of costs related to the novation process
11. Notices: Communication procedures and contact details for all parties
12. Governing Law and Jurisdiction: Confirms Maltese law as governing law and jurisdiction for disputes
1. Conditions Precedent: Used when the novation is conditional upon certain events or document deliveries
2. Regulatory Compliance: Required when the novation involves regulated entities or activities under Maltese financial services law
3. Tax Provisions: Include when there are specific tax implications or arrangements between the parties
4. Language: Required when parties wish to specify the prevailing language version (English or Maltese)
5. Original Lender Release: Detailed release provisions when the original lender requires specific discharge terms
6. Interest and Fees Apportionment: Used when there are complex arrangements for handling accrued interest or fees
7. Partial Novation Provisions: Required when only part of the loan is being novated
8. Confidentiality: Include when parties require specific confidentiality obligations beyond standard practice
1. Original Loan Agreement: Copy or details of the loan agreement being novated
2. Outstanding Amount Schedule: Details of the outstanding loan amount, interest, and any other sums as of the novation date
3. Security Documents: List and copies of all security documents to be preserved or reinstated
4. Conditions Precedent Documents: List of required documents and conditions to be satisfied before novation becomes effective
5. Form of Notice to Third Parties: Template notices to inform relevant third parties of the novation
6. Payment Instructions: New payment and banking details for loan servicing
Authors
Business Day
Borrower
Completion Date
Cut-off Date
Effective Date
Encumbrance
Event of Default
Existing Security
Finance Documents
Financial Indebtedness
Governmental Authority
Interest Period
Law
Loan
Malta
New Lender
New Security Documents
Novated Amount
Novated Rights and Obligations
Original Lender
Original Loan Agreement
Original Security
Outstanding Amount
Parties
Permitted Encumbrance
Preserved Rights
Regulatory Approvals
Related Rights
Relevant Documents
Security
Security Assets
Security Documents
Security Provider
Signing Date
Subsidiary
Tax
Transaction Documents
Transfer Date
Working Day
Recitals
Definitions
Interpretation
Novation
Conditions Precedent
Security Preservation
Representations and Warranties
Covenants
Payment Obligations
Interest
Security
Indemnification
Costs and Expenses
Assignment
Notices
Amendments
Severability
Entire Agreement
Force Majeure
Confidentiality
Data Protection
Anti-Money Laundering
Further Assurance
Counterparts
Waiver
Set-Off
Currency
Tax
Governing Law
Jurisdiction
Dispute Resolution
Financial Services
Banking
Investment Services
Real Estate
Corporate Services
Maritime
Gaming
Healthcare
Hospitality
Manufacturing
Technology
Legal
Finance
Treasury
Credit
Compliance
Risk Management
Corporate Secretariat
Banking Operations
Portfolio Management
Debt Recovery
Transaction Management
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Finance Manager
Treasury Manager
Credit Manager
Loan Officer
Compliance Officer
Risk Manager
Corporate Secretary
Financial Controller
Banking Relationship Manager
Debt Restructuring Specialist
Portfolio Manager
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Partial Novation Agreement
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Novation And Amendment Agreement
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Letter Of Novation
A Maltese law-governed document that formally substitutes either a party or an obligation in an existing contract with a new one.
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