Master Loan Agreement for Malta

Master Loan Agreement Template for Malta

A comprehensive legal agreement governed by Maltese law that establishes the framework for a lending relationship between a financial institution and a borrower. This document sets out the terms and conditions for the loan facility, including drawdown mechanics, interest calculations, repayment terms, security arrangements, representations and warranties, covenants, and events of default. It complies with Maltese financial services regulations and banking laws while incorporating EU regulatory requirements, making it suitable for both domestic and cross-border lending transactions within the EU framework.

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What is a Master Loan Agreement?

The Master Loan Agreement serves as the primary documentation for establishing and governing lending relationships in Malta's sophisticated financial services sector. This agreement type is particularly useful for ongoing lending arrangements where multiple loans may be made under a single framework. The document incorporates all essential elements required under Maltese law and EU regulations, including detailed provisions for facility terms, security arrangements, borrower obligations, and lender rights. The Master Loan Agreement is designed to accommodate various lending scenarios, from simple bilateral loans to complex syndicated facilities, while ensuring compliance with Malta Financial Services Authority requirements and European banking regulations. It typically includes comprehensive provisions for both domestic and cross-border transactions, reflecting Malta's position as an international financial center.

What sections should be included in a Master Loan Agreement?

1. Parties: Identification and details of the lender and borrower

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Defined terms, construction rules, and interpretation principles

4. The Facility: Details of the loan facility, including type, purpose, and amount

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Drawdown Procedures: Process and requirements for requesting and making loan disbursements

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

8. Repayment: Terms and schedule for repayment of the loan

9. Prepayment: Voluntary and mandatory prepayment provisions

10. Representations and Warranties: Statements of fact and assurances given by the borrower

11. Covenants: Positive and negative obligations of the borrower

12. Events of Default: Circumstances constituting default and consequences

13. Security: Security arrangements and enforcement rights

14. Changes to Parties: Assignment and transfer provisions

15. Payment Mechanics: Payment procedures, timing, and currency provisions

16. Costs and Expenses: Allocation of costs, fees, and expenses

17. Notices: Communication requirements and contact details

18. Calculations and Certificates: Basis for calculations and certification of amounts

19. Governing Law and Jurisdiction: Choice of law and dispute resolution provisions

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

1. Multiple Currencies: Required when the facility allows for drawdowns in different currencies

2. Guarantees: Include when there are third-party guarantors for the loan

3. Syndication Provisions: Required for syndicated facilities with multiple lenders

4. Tax Gross-Up and Indemnities: Detailed tax provisions for cross-border transactions

5. Increased Costs: Provisions for regulatory changes affecting lender's costs

6. Set-off Rights: Specific set-off provisions beyond standard rights

7. Bank Account Provisions: Detailed account maintenance and control provisions

8. Market Disruption: Provisions for handling market disruption events

9. Subordination: Required when the loan needs to be subordinated to other debt

What schedules should be included in a Master Loan Agreement?

1. Conditions Precedent Documents: List of required documents and conditions

2. Form of Drawdown Request: Template for borrower to request loan disbursements

3. Form of Transfer Certificate: Template for transferring loan participations

4. Repayment Schedule: Detailed schedule of repayment dates and amounts

5. Interest Calculation Examples: Examples showing interest calculation methodology

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

7. Security Documents: Forms of security documents and perfection requirements

8. Existing Indebtedness: Schedule of borrower's existing debt obligations

9. Bank Account Details: Details of designated accounts for the facility

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

Jurisdiction

Malta

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use

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