Tripartite Agreement Bank Loan for the United States

Tripartite Agreement Bank Loan Template for United States

A comprehensive lending agreement governed by United States law that establishes a contractual relationship between three parties - typically a lender (bank), borrower, and a third party (often a guarantor or security provider). The agreement details the terms and conditions of the loan, including the amount, interest rates, repayment schedule, and security arrangements. It incorporates relevant provisions from US banking regulations, consumer protection laws, and the Uniform Commercial Code, while establishing the rights, obligations, and remedies of all three parties involved in the lending arrangement.

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What is a Tripartite Agreement Bank Loan?

The Tripartite Agreement Bank Loan is a sophisticated financing instrument used in the United States when a lending arrangement requires the involvement of three distinct parties. This agreement type is commonly utilized in scenarios where additional security or support is required beyond the traditional lender-borrower relationship, such as when a parent company guarantees a subsidiary's loan, or when a third party provides specific assets as security. The document encompasses comprehensive provisions compliant with US federal banking regulations, state laws, and the Uniform Commercial Code, including detailed sections on loan terms, security arrangements, cross-guarantees, and enforcement mechanisms. It's particularly valuable in complex financing structures where the interests of multiple parties need to be carefully balanced and protected.

What sections should be included in a Tripartite Agreement Bank Loan?

1. Parties: Identifies and defines the three parties to the agreement - typically the Lender (Bank), Borrower, and Third Party (guarantor/security provider)

2. Background: Explains the context of the loan arrangement and the role of each party

3. Definitions: Defines key terms used throughout the agreement

4. Facility Details: Specifies loan amount, purpose, and key commercial terms

5. Conditions Precedent: Lists conditions that must be satisfied before the loan becomes available

6. Drawdown Provisions: Details the mechanism and requirements for drawing down the loan

7. Interest and Fees: Specifies interest rates, calculation methods, and all applicable fees

8. Repayment Terms: Details repayment schedule, prepayment provisions, and payment mechanics

9. Security Arrangements: Describes security/collateral arrangements and third party obligations

10. Representations and Warranties: Statements of fact and assurances from each party

11. Covenants: Ongoing obligations of the parties, including financial covenants

12. Events of Default: Lists circumstances constituting default and consequences

13. Remedies: Details rights and remedies of parties upon default

14. Boilerplate Provisions: Standard legal provisions including notices, amendments, governing law

What sections are optional to include in a Tripartite Agreement Bank Loan?

1. Intercreditor Provisions: Required when there are multiple lenders or ranking of security interests

2. Tax Provisions: Detailed tax clauses needed for complex transactions or cross-border loans

3. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is critical

4. Currency Provisions: Required for multi-currency facilities or cross-border transactions

5. Increased Costs: Provisions dealing with regulatory changes affecting the lender's costs

6. Market Disruption: Provisions handling interest rate benchmark disruptions

7. Assignment and Transfer: Detailed provisions for loan participation or syndication rights

What schedules should be included in a Tripartite Agreement Bank Loan?

1. Schedule 1 - Loan Terms: Detailed breakdown of facility amounts, interest rates, and fees

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

3. Schedule 3 - Drawdown Request Form: Template form for requesting loan disbursements

4. Schedule 4 - Repayment Schedule: Detailed amortization schedule if applicable

5. Schedule 5 - Security Details: Detailed description of security/collateral

6. Schedule 6 - Financial Covenants: Detailed financial ratios and calculations

7. Schedule 7 - Forms of Notices: Template forms for various notices under the agreement

8. Appendix A - Compliance Certificate: Template for periodic compliance reporting

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate

Manufacturing

Construction

Infrastructure

Energy

Healthcare

Technology

Retail

Transportation & Logistics

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Business Development

Operations

Executive Leadership

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Corporate Lawyer

Banking Relationship Manager

Credit Risk Manager

Loan Officer

Compliance Officer

Corporate Secretary

Financial Controller

Business Development Director

Chief Executive Officer

Risk Management Officer

Security Trustee

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

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