Modification Of Loan Agreement for Malaysia

Modification Of Loan Agreement Template for Malaysia

A formal legal document governed by Malaysian law that amends specific terms and conditions of an existing loan agreement while maintaining the validity of other unchanged terms. The document must comply with the Malaysian Contracts Act 1950, Financial Services Act 2013, and other relevant banking regulations. It typically addresses modifications to payment terms, interest rates, loan tenure, or security arrangements, and requires proper stamping under the Malaysian Stamp Act 1949 to ensure enforceability. For Islamic banking facilities, the document must additionally comply with Shariah principles and the Islamic Financial Services Act 2013.

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What is a Modification Of Loan Agreement?

A Modification Of Loan Agreement is essential when parties to an existing loan arrangement need to alter specific terms without creating an entirely new agreement. This document is commonly used in Malaysia when borrowers require adjustments to their loan terms due to financial circumstances, business restructuring, or mutual agreement between parties. The modification may cover changes to interest rates, repayment schedules, loan tenure, security arrangements, or other key terms. It must comply with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, Islamic banking requirements. The document preserves the original agreement's framework while clearly delineating the modified terms, making it a cost-effective and efficient solution for loan restructuring needs.

What sections should be included in a Modification Of Loan Agreement?

1. Parties: Identification of the Lender and Borrower, including their registration/identification numbers and registered addresses

2. Background: Reference to the original loan agreement, its date, and the parties' desire to modify certain terms

3. Definitions: Definitions of terms used in the modification agreement, including reference to definitions in the original agreement

4. Modification of Terms: Specific details of the terms being modified, clearly stating both the original and new terms

5. Effective Date: The date when the modifications take effect

6. Confirmation of Other Terms: Confirmation that all other terms of the original agreement remain unchanged and in full force

7. Representations and Warranties: Updated representations and warranties regarding the parties' capacity to modify the agreement

8. Governing Law and Jurisdiction: Confirmation of Malaysian law as governing law and jurisdiction for disputes

9. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a Modification Of Loan Agreement?

1. Islamic Finance Compliance: Required if the original loan is Shariah-compliant, containing relevant Shariah principles and compliance declarations

2. Security Modification: Required if any security arrangements are being modified along with the loan terms

3. Guarantor Consent: Required if the original loan has guarantors who need to consent to the modifications

4. Conditions Precedent: Required if there are specific conditions that must be met before the modifications become effective

5. Fees and Expenses: Required if there are specific fees associated with the modification

6. Tax Provisions: Required if the modifications have specific tax implications that need to be addressed

What schedules should be included in a Modification Of Loan Agreement?

1. Schedule 1 - Modified Loan Terms: Detailed breakdown of the modified terms, including new payment schedules, interest rates, or loan amount

2. Schedule 2 - Modified Security Details: If applicable, details of any changes to security arrangements

3. Schedule 3 - Conditions Precedent: List of conditions that must be satisfied before the modifications take effect

4. Appendix A - Original Loan Agreement: Copy of the original loan agreement being modified

5. Appendix B - Payment Schedule: Updated amortization or payment schedule reflecting the modifications

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 Industries

Banking and Financial Services

Real Estate

Manufacturing

Construction

Retail

Agriculture

Technology

Healthcare

Education

Transportation and Logistics

Energy and Utilities

Telecommunications

Relevant Teams

Legal

Finance

Compliance

Credit Risk

Corporate Banking

Loan Operations

Treasury

Islamic Banking

Documentation

Risk Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Compliance Officer

Credit Manager

Loan Officer

Risk Manager

Treasury Manager

Corporate Banking Manager

Relationship Manager

Contract Administrator

Company Secretary

Financial Controller

Banking Operations Manager

Credit Risk Analyst

Islamic Banking Officer

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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