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Corporate Loan Agreement for the United Kingdom

Corporate Loan Agreement Template for England and Wales

A Corporate Loan Agreement governed by English and Welsh law is a legally binding document that establishes the terms and conditions under which a financial institution provides financing to a corporate entity. The agreement details the loan amount, interest rates, repayment terms, security arrangements, representations and warranties, covenants, and events of default. It incorporates specific requirements under English law and regulatory frameworks, including FCA and PRA requirements, while ensuring compliance with the Companies Act 2006 and other relevant legislation.

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Corporate Loan Agreement

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What is a Corporate Loan Agreement?

The Corporate Loan Agreement is a fundamental document in commercial financing, used when businesses require substantial funding for various purposes such as expansion, working capital, or acquisitions. This agreement, governed by the laws of England and Wales, provides a comprehensive framework for the lending relationship, incorporating both mandatory regulatory requirements and commercial terms agreed between the parties. The document typically includes detailed provisions on facility terms, drawdown mechanisms, repayment structures, and borrower obligations, while ensuring compliance with UK banking regulations and corporate law. It's particularly crucial for establishing clear rights and obligations of all parties involved, managing risk, and providing enforcement mechanisms in case of default.

What sections should be included in a Corporate Loan Agreement?

1. Parties: Identification of lender(s) and borrower(s), including registered addresses and company numbers

2. Background: Contextual information about the loan purpose and arrangement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation

4. The Facility: Details of the loan amount, purpose, and availability

5. Conditions Precedent: Conditions that must be satisfied before drawdown

6. Repayment: Terms of repayment including schedule and methods

7. Interest: Interest rate, calculation methods, and payment terms

8. Representations and Warranties: Statements of fact and assurances given by the borrower

9. Covenants: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances that would trigger default and remedies

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

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

1. Security: Details of any security or guarantees - used when the loan is secured

2. Accordion Facility: Provisions for increasing the facility amount - used when facility increase options are required

3. Multiple Currencies: Provisions for drawing in different currencies - used for multi-currency facilities

4. Syndication Provisions: Terms governing multiple lenders - used for syndicated loans

What schedules should be included in a Corporate Loan Agreement?

1. Form of Drawdown Request: Template for borrower to request loan disbursement

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

3. Repayment Schedule: Detailed schedule of repayment dates and amounts

4. Form of Compliance Certificate: Template for periodic compliance reporting

5. Security Documents: Details of security arrangements and documentation

6. Fee Letter: Details of arrangement and other fees

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Finance Agreement

Cost

Free to use
Relevant legal definitions





















































Clauses



































Industries

Companies Act 2006: Primary legislation governing corporate matters including corporate capacity, authority, directors' duties and powers, and registration requirements

Financial Services and Markets Act 2000: Key legislation establishing regulatory framework for financial services, including licensing requirements and consumer protection provisions

Consumer Credit Act 1974: Legislation governing consumer credit arrangements and regulatory requirements for credit agreements

Law of Property Act 1925: Legislation governing property-related matters, particularly relevant for secured loans including requirements for creation and registration of security

FCA Regulations: Financial Conduct Authority regulations covering conduct of business rules, financial promotion rules, and consumer protection requirements

PRA Requirements: Prudential Regulation Authority requirements covering capital adequacy requirements and risk management standards

Unfair Contract Terms Act 1977: Legislation governing the reasonableness of contract terms and limitation of liability provisions

Money Laundering Regulations 2017: Regulations establishing due diligence requirements and reporting obligations for financial transactions

Insolvency Act 1986: Legislation governing insolvency proceedings, events of default, creditor rights, and security enforcement

European Union (Withdrawal) Act 2018: Legislation governing post-Brexit implications and retained EU law considerations in UK legal framework

Common Law Principles: Fundamental legal principles covering contract formation, consideration, capacity to contract, misrepresentation, and breach of contract remedies

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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