Inter Lender Agreement for Malaysia

Inter Lender Agreement Template for Malaysia

A comprehensive agreement governed by Malaysian law that establishes the relationship, rights, and priorities between multiple lenders in a financing transaction. The document sets out the ranking of debt, payment waterfalls, voting rights, and enforcement mechanisms among different classes of creditors. It ensures orderly decision-making and coordinated enforcement actions while complying with Malaysian banking regulations and financial services laws. The agreement includes specific provisions for security sharing, standstill periods, and the appointment and powers of a security trustee under Malaysian legal framework.

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What is a Inter Lender Agreement?

The Inter Lender Agreement is a crucial document in complex financing arrangements where multiple lenders provide different types or tranches of debt to a borrower. This agreement, structured under Malaysian law and compliant with local banking regulations, establishes the framework for how different classes of lenders will interact, make decisions, and share in security and recoveries. It is particularly important in project financing, syndicated lending, and restructuring scenarios where multiple creditors need to coordinate their actions. The document addresses key aspects such as payment priorities, enforcement rights, voting mechanisms, and the role of the security trustee, while ensuring compliance with Malaysian legal requirements including the Financial Services Act 2013 and relevant Central Bank directives.

What sections should be included in a Inter Lender Agreement?

1. Parties: Identifies all lenders, security trustee, facility agent, and other relevant parties to the agreement

2. Background: Recitals explaining the context of the lending arrangement, reference to facility agreements, and purpose of the inter-lender agreement

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

4. Ranking and Priority: Establishes the ranking of debt and priority of payments between different classes of lenders

5. Payment Provisions: Details the waterfall of payments and sharing arrangements between lenders

6. Security and Enforcement: Provisions regarding the common security package and enforcement rights

7. Decision Making and Voting: Procedures for making decisions, voting thresholds, and consultation requirements

8. Role of Security Trustee: Powers, duties, and protections of the security trustee

9. Administration Provisions: Day-to-day administration of the agreement including notices, calculations, and record-keeping

10. Transfer and Assignment: Provisions governing the transfer of rights and obligations under the agreement

11. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes

What sections are optional to include in a Inter Lender Agreement?

1. Standstill Provisions: Optional section used when there's a need to restrict individual enforcement actions by lenders for a specified period

2. Subordination Provisions: Detailed subordination terms, needed when there are deeply subordinated creditors or shareholder loans

3. Buy-out Rights: Include when certain lenders are given rights to buy out other lenders' positions in specific circumstances

4. New Debt Provisions: Required when the agreement needs to accommodate potential future additional debt facilities

5. Hedging Liabilities: Include when hedging providers are party to the intercreditor arrangements

6. Debt Purchase Transactions: Include when borrower group members may be permitted to purchase debt in certain circumstances

What schedules should be included in a Inter Lender Agreement?

1. Form of Accession Deed: Standard form for new parties to accede to the agreement

2. Form of Transfer Certificate: Template for documenting transfers between lenders

3. Security Documents: List and details of all security documents covered by the agreement

4. Contact Details: Contact information for all parties for notices and communications

5. Voting Provisions: Detailed mechanics of voting procedures and majority thresholds

6. Payment Waterfall: Detailed breakdown of payment priorities and calculations

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Relevant Industries

Banking and Financial Services

Real Estate and Construction

Infrastructure Development

Energy and Utilities

Manufacturing

Telecommunications

Oil and Gas

Mining and Resources

Transportation and Logistics

Healthcare

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Finance

Loan Administration

Investment

Restructuring

Documentation

Transaction Management

Relevant Roles

Chief Financial Officer

Legal Counsel

Finance Director

Treasury Manager

Credit Risk Manager

Loan Officer

Relationship Manager

Compliance Officer

Corporate Finance Manager

Investment Director

Restructuring Officer

Security Trustee Officer

Facility Agent Manager

Transaction Manager

Documentation Manager

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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