Loan Agreement With Security Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions of a loan facility while simultaneously creating security interests over specified assets to protect the lender's interests. The agreement incorporates provisions compliant with Malaysian financial regulations, including the Financial Services Act 2013 and relevant security registration requirements. It details the loan amount, interest rates, repayment terms, security arrangements, events of default, and enforcement mechanisms, while ensuring compliance with local stamp duty requirements and registration procedures.

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Loan Agreement With Security

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What is a Loan Agreement With Security?

The Loan Agreement With Security is a vital legal instrument used in Malaysian financing transactions where a lender provides funding to a borrower with the additional protection of security over specific assets. This document is essential when parties wish to establish a formal lending arrangement with collateral backing, whether for business expansion, asset acquisition, or other financing needs. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Financial Services Act 2013, and relevant security registration laws. It is particularly important for commercial lending, property financing, and corporate borrowing where the lender requires security to mitigate credit risk. The document includes comprehensive provisions for creating and perfecting security interests, ensuring enforceability under Malaysian law, and protecting the lender's rights in case of default.

What sections should be included in a Loan Agreement With Security?

1. Parties: Identification of the lender and borrower with full legal names and details

2. Background: Context of the loan arrangement and security being provided

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Loan: Core loan terms including amount, purpose, and conditions precedent

5. Interest and Fees: Interest rate, calculation method, fees and charges

6. Repayment Terms: Repayment schedule, prepayment provisions, and payment mechanics

7. Security: Description of security provided, creation of security interest, and perfection requirements

8. Representations and Warranties: Statements of fact and assurances from the borrower

9. Borrower Covenants: Positive and negative obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Enforcement: Lender's rights and remedies upon default, including realization of security

12. General Provisions: Standard provisions including notices, amendments, and governing law

What sections are optional to include in a Loan Agreement With Security?

1. Guarantee: Required when there is a guarantor for the loan

2. Insurance: Detailed insurance requirements for secured assets

3. Assignment and Transfer: Include when the loan may be assignable

4. Additional Security Provider Provisions: Required when security provider is different from borrower

5. Tax Provisions: Detailed tax provisions when loan has significant tax implications

6. Foreign Currency Provisions: Required for loans in foreign currency

7. Islamic Finance Provisions: Required if loan needs to be Shariah-compliant

What schedules should be included in a Loan Agreement With Security?

1. Schedule 1 - Loan Details: Specific loan terms including amount, interest rate, and repayment schedule

2. Schedule 2 - Security Details: Detailed description of security assets and perfection requirements

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before loan disbursement

4. Schedule 4 - Repayment Schedule: Detailed amortization or repayment schedule

5. Schedule 5 - Form of Notices: Standard forms for drawdown, prepayment and other notices

6. Schedule 6 - Security Documents: Forms of security documents such as charges or assignments

7. Appendix A - Property Details: Required if security includes real property

8. Appendix B - Registration Requirements: Checklist of registration requirements under Malaysian law

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

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Construction

Agriculture

Technology

Retail

Healthcare

Education

Transportation and Logistics

Energy and Utilities

Mining and Resources

Hospitality

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Credit Administration

Documentation

Company Secretarial

Business Development

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Banking Officer

Credit Manager

Risk Manager

Compliance Officer

Treasury Manager

Company Secretary

Finance Manager

Commercial Director

Business Development Manager

Loan Officer

Security Trustee

Corporate Banking Manager

Legal Manager

Documentation Specialist

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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