The Loan Termination Agreement is utilized when parties wish to formally conclude a lending relationship, whether due to full repayment, refinancing, or mutual agreement to terminate. This document is essential in the Maltese jurisdiction, where formal documentation of debt discharge is crucial under the Civil Code. The agreement serves multiple purposes: it confirms the final settlement amount, provides for the release of any securities or guarantees, and ensures mutual discharge of future obligations. It's particularly important in Malta's financial services sector, where clear documentation of loan termination is required for regulatory compliance and audit purposes. The document typically includes detailed settlement calculations, arrangements for the return of security documents, and provisions for the survival of certain obligations where necessary.

1. Parties: Identification of the lender and borrower, including full legal names, registration numbers (if applicable), and registered addresses

2. Background: Recitals describing the original loan agreement, its key terms, and the parties' intention to terminate

3. Definitions: Definitions of key terms used in the agreement, including references to the original loan agreement and related documents

4. Acknowledgment of Outstanding Amount: Statement of the final loan balance, including principal, interest, and any other charges as of the termination date

5. Termination: Express termination of the loan agreement and the effective date of termination

6. Settlement Terms: Details of how the outstanding amount will be settled, including payment method and timing

7. Release and Discharge: Mutual release of obligations and discharge of liabilities related to the loan agreement

8. Return of Security Documents: Provisions for the return or cancellation of any security documents

9. Representations and Warranties: Confirmation that parties have authority to enter into the termination agreement and that all information provided is accurate

10. Governing Law and Jurisdiction: Confirmation that the agreement is governed by Maltese law and subject to Maltese courts' jurisdiction