Tri Party Loan Agreement for the United States

Tri Party Loan Agreement Template for United States

A Tri-Party Loan Agreement is a legally binding contract under U.S. federal and state laws that establishes the terms and conditions of a loan arrangement between three parties: typically a lender, borrower, and security agent/trustee. The agreement outlines loan amount, interest rates, repayment terms, security arrangements, and the respective rights and obligations of all parties. It incorporates provisions compliant with federal regulations including TILA, ECOA, and state-specific banking and usury laws.

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What is a Tri Party Loan Agreement?

The Tri-Party Loan Agreement is essential for complex financing arrangements where security interests need independent management. This document is commonly used in situations requiring additional oversight of collateral or when multiple lenders are involved in syndicated loans. The agreement ensures compliance with U.S. federal and state lending regulations while providing clear structure for loan administration, security management, and default scenarios. It's particularly valuable in commercial lending, real estate financing, and project finance where substantial assets serve as collateral.

What sections should be included in a Tri Party Loan Agreement?

1. Parties: Identification of lender, borrower, and guarantor/security agent

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

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of loan amount and intended use

5. Interest Rate and Calculations: Interest rate terms and calculation methodology

6. Repayment Terms: Schedule and methods of repayment

7. Security: Details of collateral or security arrangements

8. Events of Default: Circumstances constituting default and consequences

What sections are optional to include in a Tri Party Loan Agreement?

1. Representations and Warranties: Party statements about their status and capacity - typically used in complex commercial loans

2. Conditions Precedent: Conditions that must be met before loan disbursement - used for staged or conditional loans

3. Covenants: Ongoing obligations of the borrower - used for business loans with specific performance requirements

What schedules should be included in a Tri Party Loan Agreement?

1. Repayment Schedule: Detailed schedule of payment dates and amounts

2. Security Details: Detailed description of security/collateral

3. Form of Drawdown Notice: Template for requesting loan disbursements

4. Conditions Precedent Documents: List of required documents prior to disbursement

5. Fee Schedule: Breakdown of all applicable fees and charges

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

United States

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Clauses
Industries

Truth in Lending Act (TILA) and Regulation Z: Federal law requiring disclosure of key terms and costs in consumer credit transactions, governing interest rate disclosures and consumer rights

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending practices and ensuring fair access to credit

Fair Credit Reporting Act (FCRA): Federal law regulating the collection and use of credit information and affecting credit reporting aspects of the loan

Bank Secrecy Act (BSA): Federal law establishing anti-money laundering requirements and Know Your Customer (KYC) obligations

Dodd-Frank Wall Street Reform and Consumer Protection Act: Federal law providing overall financial regulation framework and consumer protection provisions

State Usury Laws: State-specific laws governing maximum interest rates and interest rate calculations

State Banking Regulations: State-specific laws covering licensing requirements and lending requirements for banking operations

State Consumer Protection Laws: State-specific laws mandating additional disclosure requirements and consumer rights

State Security Interest Laws: State-specific laws governing collateral requirements and UCC provisions

State Contract Laws: State-specific laws governing contract formation, enforcement, and statute of frauds requirements

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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