Loan Sharing Agreement for Singapore

Loan Sharing Agreement Template for Singapore

A Loan Sharing Agreement under Singapore law is a legally binding document that establishes the terms and conditions under which multiple parties share in the risks, rewards, and responsibilities of a loan facility. It governs the relationship between lenders, defining their respective rights, obligations, and participation percentages. The agreement complies with Singapore's regulatory framework, including MAS guidelines and the Banking Act, ensuring proper risk sharing and financial governance.

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What is a Loan Sharing Agreement?

A Loan Sharing Agreement is essential when multiple lenders wish to participate in a single loan facility while managing their exposure and risk. This document, governed by Singapore law, outlines the participation structure, rights allocation, and administrative procedures for sharing loan proceeds and responsibilities. It's particularly relevant for large-scale financing where risk diversification is desired. The agreement includes crucial elements such as sharing percentages, payment waterfall provisions, and voting rights, while ensuring compliance with Singapore's robust financial regulatory framework including MAS guidelines and banking regulations.

What sections should be included in a Loan Sharing Agreement?

1. Parties: Identification and details of all parties involved in the loan sharing arrangement

2. Background: Context of the loan sharing arrangement and relationship between parties

3. Definitions: Key terms and their meanings as used in the agreement

4. Loan Details: Specific terms of the loan including amount, interest rate, and duration

5. Sharing Structure: Details of how the loan is shared between parties including percentages and roles

6. Payment Terms: Schedule and method of payments, including distribution mechanism

7. Rights and Obligations: Responsibilities and entitlements of each party

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

1. Security Arrangements: Details of any collateral or security provided - use when the loan is secured by assets or guarantees

2. Assignment Rights: Terms for transferring rights under the agreement - use when parties want the ability to transfer their interests

3. Special Conditions: Any unique terms specific to this arrangement - use when there are non-standard terms to be included

What schedules should be included in a Loan Sharing Agreement?

1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest calculations, and repayment schedule

2. Schedule 2 - Sharing Proportions: Detailed breakdown of each party's share and participation percentage

3. Schedule 3 - Security Details: List and description of any security or collateral provided

4. Appendix A - Form of Transfer Certificate: Standard form for documenting any transfer of rights under the agreement

5. Appendix B - Payment Procedures: Detailed procedures for making and receiving payments

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
Industries

Money Lending Act (Cap. 188): Primary legislation governing money lending activities in Singapore, including licensing requirements and regulation of money lenders

Banking Act (Cap. 19): Key legislation regulating banking institutions and banking activities in Singapore, including requirements for loan facilities

Securities and Futures Act (Cap. 289): Relevant when loan sharing involves securities or financial instruments, governing securities trading and market conduct

Civil Law Act (Cap. 43): Fundamental legislation governing civil matters including contract principles and remedies in Singapore

Contracts Act (Cap. 53): Core legislation governing formation and enforcement of contracts in Singapore

MAS Guidelines on Sharing of Credit Facilities: Regulatory guidelines from Monetary Authority of Singapore specifically addressing credit facility sharing arrangements

Companies Act (Cap. 50): Legislation governing corporate entities and their operations, relevant when parties are corporations

Stamp Duties Act (Cap. 312): Legislation governing stamp duty requirements for legal documents and transactions

Anti-Money Laundering and CFT Regulations: Regulatory requirements for preventing money laundering and terrorism financing in financial transactions

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data in Singapore

Property Law Act (Cap. 242): Relevant when loan involves property security, governing real property transactions and security interests

Consumer Protection (Fair Trading) Act: Legislation protecting consumer interests in trading and financial transactions

Unfair Contract Terms Act (Cap. 396): Legislation controlling the use of unfair terms in contracts and protecting against unreasonable contract provisions

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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