Loan Conversion Agreement for New Zealand

Loan Conversion Agreement Template for New Zealand

A Loan Conversion Agreement is a legal document used in New Zealand that facilitates the conversion of an existing loan into equity shares in the borrower company. This agreement outlines the terms and conditions under which the conversion will take place, including the conversion trigger events, pricing mechanism, and resulting shareholding structure. It ensures compliance with New Zealand's Companies Act 1993 and Financial Markets Conduct Act 2013, while addressing key aspects such as shareholder rights, corporate governance requirements, and necessary regulatory approvals. The agreement provides a structured framework for debt-to-equity conversion, offering both lenders and borrowers a clear path to restructure their financial relationship.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Loan Conversion Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Loan Conversion Agreement?

The Loan Conversion Agreement is commonly used in New Zealand business contexts where companies seek to restructure their debt obligations or when investors wish to convert their loan investments into equity ownership. This document becomes particularly relevant in scenarios such as startup funding rounds, debt restructuring, or strategic investment arrangements. The agreement must comply with New Zealand corporate and securities laws, particularly the Companies Act 1993 and Financial Markets Conduct Act 2013. It typically details the existing loan terms, conversion mechanisms, trigger events, and resulting shareholding structure. The Loan Conversion Agreement serves as a crucial tool for businesses looking to strengthen their balance sheet, reduce debt burden, or provide investors with equity participation, while ensuring all regulatory requirements are met and stakeholder interests are protected.

What sections should be included in a Loan Conversion Agreement?

1. Parties: Identification of the lender, borrower, and any guarantors or other relevant parties

2. Background: Recitals explaining the existing loan arrangement and the intention to convert the loan to equity

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

4. Loan Details: Description of the existing loan, including amount, interest, and other key terms

5. Conversion Mechanics: Details of how and when the loan will convert to equity, including conversion price/ratio

6. Conversion Trigger Events: Specific events or conditions that will trigger the conversion

7. Share Issuance: Process and requirements for issuing shares upon conversion

8. Representations and Warranties: Standard representations and warranties from all parties

9. Pre-Conversion Conditions: Conditions that must be satisfied before conversion can occur

10. Post-Conversion Rights: Rights of the converting lender as a shareholder

11. General Provisions: Standard contract clauses including notices, amendments, governing law

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

1. Security Release: Required if the original loan was secured and security needs to be released upon conversion

2. Shareholder Approval: Required if shareholder approval is needed for the conversion

3. Board Approval Process: Include if specific board approval procedures are required

4. Anti-dilution Protection: Include if the converting lender requires protection against future dilution

5. Tag-Along Rights: Include if the converting lender requires the right to participate in future share sales

6. Drag-Along Rights: Include if majority shareholders require the right to force the converting lender to sell

7. Partial Conversion Rights: Include if the loan can be converted in parts rather than all at once

8. Tax Provisions: Specific tax-related provisions if there are particular tax implications to address

What schedules should be included in a Loan Conversion Agreement?

1. Loan Details Schedule: Detailed description of the existing loan terms and outstanding amounts

2. Conversion Calculations: Detailed methodology for calculating the number of shares to be issued

3. Form of Conversion Notice: Template notice to be used when exercising conversion rights

4. New Shareholding Structure: Post-conversion shareholding structure of the company

5. Required Approvals: List of all required regulatory and corporate approvals

6. Share Rights and Restrictions: Detailed description of the rights attached to the shares post-conversion

7. Form of Board Resolution: Template board resolution approving the conversion and share issuance

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

New Zealand

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology and Startups

Financial Services

Manufacturing

Real Estate

Professional Services

Healthcare

Retail

Energy

Agriculture

Construction

Mining and Resources

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Treasury

Compliance

Risk Management

Board of Directors

Company Secretariat

Investment

Executive Leadership

Relevant Roles

Chief Financial Officer

Finance Director

Corporate Lawyer

Investment Manager

Company Secretary

Financial Controller

Treasury Manager

Legal Counsel

Investment Director

Managing Director

CEO

Board Director

Compliance Officer

Risk Manager

Corporate Development 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

Find the exact document you need

Personal Loan Letter Between Friends

A New Zealand-compliant document that formalizes a personal loan agreement between friends, including loan terms, repayment conditions, and legal safeguards.

find out more

Written Loan Agreement

A New Zealand-compliant agreement setting out the terms and conditions of a loan, including amount, interest, repayment terms, and parties' obligations.

find out more

Small Loan Contract

A New Zealand-compliant small loan agreement template that sets out terms, conditions, and obligations for both lender and borrower under NZ law.

find out more

Pro Forma Loan Agreement

New Zealand-compliant loan agreement template setting out terms for lending arrangements, suitable for both commercial and consumer lending scenarios.

find out more

Revolving Credit Contract

A New Zealand law-governed agreement establishing a revolving credit facility between a lender and borrower, compliant with CCCFA requirements.

find out more

Loan Car Form

A New Zealand-compliant legal form for temporary vehicle loans, establishing terms and conditions between vehicle providers and borrowers.

find out more

Loan Agreement With Interest

A New Zealand-governed agreement establishing terms for a loan with interest, including repayment conditions and statutory requirements.

find out more

Money Loan Agreement

A New Zealand-compliant agreement establishing terms and conditions for a monetary loan between a lender and borrower, including repayment terms and obligations.

find out more

Family Member Promissory Note

A New Zealand-compliant promissory note documenting loan terms between family members, including principal amount, interest, and repayment conditions.

find out more

Debt Consolidation Agreement

A New Zealand-compliant agreement for consolidating multiple debts into a single loan, including terms, conditions, and statutory disclosures.

find out more

Vendor Finance Loan Agreement

A New Zealand-compliant agreement enabling vendor-provided financing for purchase of goods or services, including loan terms and security arrangements.

find out more

Fixed Sum Loan Agreement Early Settlement

New Zealand-governed fixed-sum loan agreement with early settlement provisions, compliant with CCCFA requirements.

find out more

Acknowledgement Of Debt Agreement

A New Zealand-compliant legal document where a debtor formally acknowledges their debt obligation and agrees to specific repayment terms.

find out more

Mortgage Spreader Agreement

A New Zealand legal document that extends an existing mortgage security to cover additional properties, compliant with NZ property law requirements.

find out more

Debt Payment Agreement

A New Zealand-compliant agreement that formalizes debt repayment terms between a creditor and debtor, including payment schedule, interest rates, and default provisions.

find out more

Loan Repayment Contract

A New Zealand-compliant agreement setting out terms and conditions for loan repayment between lender and borrower, including payment schedules and obligations.

find out more

Discounted Payoff Agreement

A New Zealand law-governed agreement that documents the settlement of an outstanding debt for a reduced amount, specifying payment terms and discharge conditions.

find out more

Overagreement

A New Zealand law-governed master agreement that establishes overarching terms for multiple underlying agreements between parties.

find out more

Litigation Financing Agreement

A New Zealand-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, returns, and risk allocation.

find out more

Promise Note

A legally binding financial document under New Zealand law containing an unconditional promise to pay a specified sum of money to a designated party.

find out more

Peer To Peer Lending Contract

A New Zealand-compliant agreement establishing terms and conditions for peer-to-peer lending arrangements between lenders, borrowers, and P2P platforms.

find out more

Debt Agreement Contract

A New Zealand-compliant agreement establishing terms and conditions for lending arrangements between parties, including loan details, repayment terms, and legal obligations.

find out more

Loan Repayment Letter

A New Zealand-compliant formal letter outlining loan repayment terms and schedule between a lender and borrower.

find out more

Letter To Borrow Money From Friend

A formal letter document under New Zealand law that outlines the terms and conditions of borrowing money from a friend, including loan amount, repayment terms, and mutual obligations.

find out more

Contract For Land Purchase

A New Zealand-compliant legal agreement for the sale and purchase of land, detailing property transfer terms and conditions between vendor and purchaser.

find out more

General Loan Agreement

A New Zealand-compliant loan agreement template establishing terms for lending arrangements, suitable for both commercial and personal lending purposes.

find out more

Loan Novation Agreement

A New Zealand law-governed agreement that transfers loan obligations from an original borrower to a new borrower while maintaining the original lender's rights.

find out more

Student Loan Agreement

A New Zealand-governed agreement establishing terms and conditions for government-provided student loans, including loan amounts, repayment terms, and borrower obligations.

find out more

Simple Loan Application Form

A New Zealand-compliant loan application form for gathering applicant information and assessing creditworthiness under local lending regulations.

find out more

Payday Loan Contract

New Zealand-compliant payday loan agreement template incorporating CCCFA requirements and consumer protections for short-term lending.

find out more

Loan Guarantee

A New Zealand-governed agreement where a guarantor assumes responsibility for another party's loan obligations to a lender.

find out more

Investment Loan Contract

New Zealand-governed agreement establishing terms for investment-purposed lending, including loan terms, security arrangements, and regulatory compliance requirements.

find out more

Debt Repayment Contract

A New Zealand-compliant agreement establishing terms and schedule for debt repayment between creditor and debtor.

find out more

Employee Laptop Loan Agreement

A New Zealand-compliant agreement governing the loan of company laptop equipment to employees, including usage terms and return conditions.

find out more

Borrowing Form

A New Zealand-compliant borrowing form that establishes loan terms and conditions between lender and borrower, incorporating CCCFA requirements.

find out more

Device Loan Agreement

A New Zealand-compliant agreement governing the temporary loan of devices from an organization to individuals, establishing usage terms and responsibilities.

find out more

Simple Equipment Borrowing Agreement

A New Zealand-compliant agreement for temporary equipment lending, establishing terms for equipment use, maintenance, and return conditions.

find out more

Loan Out Agreement

A New Zealand-governed agreement for the provision of individual services through a loan-out company structure to an engaging business.

find out more

No Loan Agreement

A New Zealand-governed agreement that formally documents the non-existence of a loan between parties or confirms that a previous loan has been fully satisfied.

find out more

Memorandum Of Loan Agreement

A New Zealand-compliant agreement that establishes the terms and conditions of a loan between parties, including principal amount, interest, repayment terms, and obligations.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now