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Loan Deed Agreement for the United Kingdom

Loan Deed Agreement Template for England and Wales

A Loan Deed Agreement is a formal legal document governed by the laws of England and Wales that creates a binding obligation between a lender and borrower. It differs from a standard loan agreement as it is executed as a deed, providing certain legal advantages including a longer limitation period for enforcement (12 years instead of 6) and not requiring consideration to be proven. The document sets out the terms of the loan, including amount, interest, repayment terms, security arrangements, and default provisions.

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Loan Deed Agreement

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What is a Loan Deed Agreement?

The Loan Deed Agreement is a specialized lending instrument used in England and Wales when parties require the enhanced legal protection offered by deed execution. This document type is particularly valuable for significant loans, property-related lending, or when the parties desire the extended limitation period for enforcement. The agreement includes comprehensive terms covering the loan amount, interest calculations, repayment schedule, security arrangements, and default provisions. A Loan Deed Agreement must comply with specific execution requirements under English law, including witnessing and delivery.

What sections should be included in a Loan Deed Agreement?

1. Parties: Identification and details of lender and borrower

2. Background: Context and purpose of the loan

3. Definitions: Key terms used throughout the agreement

4. Loan Amount and Purpose: Specifics of the loan amount and its intended use

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

6. Repayment Terms: Schedule and method of repayment

7. Security: Details of any security or collateral

8. Events of Default: Circumstances constituting default and consequences

9. Representations and Warranties: Statements of fact and assurances from parties

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

1. Guarantor Provisions: Terms relating to guarantors when loan includes third-party guarantors

2. Insurance Requirements: Required insurance coverage when specific insurance is required as condition of loan

3. Assignment Rights: Rights to transfer or assign the loan when assignment rights are to be included

4. Prepayment Provisions: Terms for early repayment when early repayment is permitted

What schedules should be included in a Loan Deed Agreement?

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

2. Security Details: Detailed description of security or collateral

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

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

5. Guarantor Documents: Forms and documents relating to guarantors

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

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions




































Clauses






























Industries

Law of Property Act 1925: Primary legislation governing property law, including requirements for deeds (Section 1), formalities for creation and execution, and requirements for witnessing

Consumer Credit Act 1974: Regulates consumer credit agreements, covering licensing requirements, mandatory information requirements, cooling-off periods, and unfair relationship provisions

Financial Services and Markets Act 2000: Establishes regulatory framework for financial services, including requirements for regulated loans and authorisation requirements

Consumer Rights Act 2015: Governs consumer protection, including unfair contract terms, transparency requirements, and consumer protection provisions

Limitation Act 1980: Sets time limits for enforcement and statutory limitation periods for legal actions relating to loans and contracts

Money Laundering Regulations 2017: Establishes due diligence requirements and record keeping obligations for financial transactions

Data Protection Act 2018 & UK GDPR: Governs data protection requirements and privacy considerations in handling personal information

Contracts (Rights of Third Parties) Act 1999: Regulates how third parties may enforce terms of contracts and their rights under contractual agreements

Financial Services Act 2012: Updates and amends financial services regulation, including requirements for financial transactions and services

Unfair Contract Terms Act 1977: Controls reasonableness of contract terms and limitation of liability provisions in contractual 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, 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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