The Loan Agreement Between Lender Borrower And Guarantor is a vital financial instrument used in Nigerian business and personal lending transactions where additional security is required beyond the borrower's commitments. This document is essential when a lender requires extra assurance for loan repayment through a third-party guarantee, commonly used in both corporate and individual lending scenarios. The agreement must comply with Nigerian banking regulations, particularly the Central Bank of Nigeria's guidelines on lending and security arrangements. It's structured to protect the lender's interests while clearly defining the obligations of both the borrower and guarantor, including specific trigger events for the guarantee's activation and the extent of the guarantor's liability. The document is particularly relevant in situations where borrowers may have limited credit history or require larger loan amounts that necessitate additional security measures.

1. Parties: Identifies and provides full details of the Lender, Borrower, and Guarantor including names, addresses, and registration details if companies

2. Background: Explains the context of the loan agreement and the role of the guarantor in securing the loan

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest and Fees: Details the interest rate, calculation method, and any applicable fees

6. Repayment Terms: Specifies repayment schedule, payment methods, and prepayment provisions

7. Conditions Precedent: Lists conditions that must be satisfied before the loan is disbursed

8. Representations and Warranties: Statements of fact by the Borrower and Guarantor about their legal and financial status

9. Borrower's Covenants: Ongoing obligations and restrictions on the Borrower during the loan term

10. Guarantor's Obligations: Details the scope and nature of the guarantee, including the guarantor's specific obligations

11. Events of Default: Lists circumstances that would constitute default and trigger remedial actions

12. Remedies: Outlines the Lender's rights and remedies in case of default

13. Governing Law and Jurisdiction: Specifies Nigerian law as governing law and defines jurisdiction for disputes

14. Notices: Specifies how formal communications between parties should be made

15. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments