Loan And Guarantee Agreement for Singapore

Loan And Guarantee Agreement Template for Singapore

A comprehensive legal agreement governed by Singapore law that combines both lending and guarantee provisions. It establishes the terms of a loan facility while simultaneously incorporating guarantee obligations from a third party. The document complies with Singapore's Civil Law Act and Banking Act requirements, providing security for the lender through both the primary borrower's obligations and the guarantor's commitment.

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What is a Loan And Guarantee Agreement?

The Loan And Guarantee Agreement is a crucial financial instrument used in Singapore when a third party's guarantee is required to secure a loan facility. This document is particularly relevant when the borrower's creditworthiness alone may not satisfy the lender's requirements, necessitating additional security through a guarantee. The agreement covers essential elements including loan terms, repayment schedules, interest rates, and the scope of the guarantee, all structured within Singapore's legal framework. It's commonly used in corporate financing, property transactions, and business expansion scenarios where additional security is required beyond the primary borrower's obligations.

What sections should be included in a Loan And Guarantee Agreement?

1. Parties: Identifies and defines all parties to the agreement (Lender, Borrower, Guarantor)

2. Background: Context of the loan and guarantee arrangement

3. Definitions: Key terms used throughout the agreement

4. Loan Terms: Principal amount, interest rate, repayment schedule

5. Guarantee Provisions: Scope and terms of the guarantee

6. Representations and Warranties: Statements of fact by parties

7. Events of Default: Circumstances constituting default and consequences

8. Governing Law and Jurisdiction: Applicable law and dispute resolution

What sections are optional to include in a Loan And Guarantee Agreement?

1. Security Provisions: Additional provisions when loan is secured against specific assets. Include when collateral is involved.

2. Insurance Requirements: Obligations to maintain insurance. Include for secured loans or high-value transactions.

3. Assignment Provisions: Rights to assign the agreement. Include when transferability is important.

4. Financial Covenants: Financial obligations of borrower. Include for corporate borrowers.

What schedules should be included in a Loan And Guarantee Agreement?

1. Repayment Schedule: Detailed payment dates and amounts

2. Security Details: Description of any collateral or security

3. Conditions Precedent: List of conditions to be met before drawdown

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

5. Guarantee Confirmation: Formal guarantee undertaking document

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

Civil Law Act (Cap. 43): Primary legislation governing contractual relationships, interest rates regulations, and provisions on guarantees in Singapore

Moneylenders Act (Cap. 188): Regulates moneylending activities, sets requirements for licensed moneylenders, and stipulates maximum interest rates

Banking Act (Cap. 19): Regulates banking operations and security requirements, particularly relevant if the lender is a banking institution

Contracts (Rights of Third Parties) Act: Governs third-party rights under contracts, particularly important for guarantee provisions

Consumer Protection (Fair Trading) Act: Ensures fair trading practices, applicable when the borrower is a consumer

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in the context of the loan agreement

Statute of Frauds: Legal requirement that guarantees must be in writing and properly executed

Stamp Duties Act: Governs requirements for stamp duty payment, including timing and amount of duties

Limitation Act: Sets time limits for enforcement of rights and relevant for default provisions in loan agreements

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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