Conditional Loan Agreement for Singapore

Conditional Loan Agreement Template for Singapore

A legally binding agreement under Singapore law that establishes the terms and conditions for a loan facility where the disbursement is subject to specific conditions being met. The agreement details the loan amount, interest rates, repayment terms, conditions precedent, and events of default, all structured within Singapore's regulatory framework including the Moneylenders Act and Banking Act. It includes specific provisions for security, representations and warranties, and compliance with local banking regulations.

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What is a Conditional Loan Agreement?

The Conditional Loan Agreement is a crucial financial instrument in Singapore's lending landscape, commonly used when lenders require certain conditions to be satisfied before funds are released. This document type is particularly relevant for complex financing arrangements where risk management is paramount. The agreement combines Singapore's strict regulatory requirements with commercial lending practices, ensuring compliance with the Moneylenders Act and related legislation. It typically includes detailed conditions precedent, drawdown mechanisms, and security arrangements, making it suitable for both corporate and institutional lending scenarios.

What sections should be included in a Conditional Loan Agreement?

1. Parties: Identification and details of the lender and borrower

2. Background: Context and purpose of the loan agreement

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specific amount being lent and its intended use

5. Conditions Precedent: Prerequisites that must be met before the loan becomes effective

6. Interest and Fees: Interest rate, calculation method, and applicable fees

7. Repayment Terms: Schedule and method of repayment

8. Events of Default: Circumstances constituting default and consequences

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

1. Security: Details of any collateral or guarantees (used when the loan is secured)

2. Insurance Requirements: Required insurance coverage for borrower or collateral (used when specific insurance is required)

3. Representations and Warranties: Additional statements of fact by borrower (used for complex or high-value loans)

4. Assignment Provisions: Rights to assign the loan to third parties (used when assignment rights are relevant)

What schedules should be included in a Conditional Loan Agreement?

1. Repayment Schedule: Detailed breakdown of repayment dates and amounts

2. Conditions Precedent Documents: List of required documents and conditions

3. Security Documents: Details of security arrangements if applicable

4. Form of Drawdown Notice: Template for requesting loan disbursement

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

Singapore

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Moneylenders Act (Chapter 188): Primary legislation governing moneylending activities in Singapore, including licensing requirements, interest rate caps and restrictions for moneylenders

Banking Act (Chapter 19): Regulatory framework for banking institutions in Singapore, outlining requirements for banks and financial institutions involved in lending activities

Contracts Act (Chapter 53): Fundamental legislation governing contract formation, including requirements for valid contracts such as offer, acceptance, and consideration

Civil Law Act (Chapter 43): Legislation governing interest rates, charges, and contractual remedies in civil matters

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore for regulated financial institutions regarding lending practices

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data, relevant for handling borrower information

AML/CFT Requirements: Anti-Money Laundering and Countering the Financing of Terrorism requirements including KYC and transaction monitoring obligations

Consumer Protection (Fair Trading) Act: Legislation protecting consumer interests in trading activities, including financial services and lending

Bankruptcy Act (Chapter 20): Legislation governing bankruptcy proceedings, creditor rights, and remedies in cases of borrower insolvency

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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