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Master Asset Finance Agreement for the United Kingdom

Master Asset Finance Agreement Template for England and Wales

A Master Asset Finance Agreement is a comprehensive legal framework governed by English and Welsh law that establishes the terms and conditions for multiple asset financing transactions between a finance provider and a customer. It sets out the overarching legal structure while allowing individual transactions to be documented through shorter supplemental agreements. The agreement covers key aspects including payment terms, asset ownership, maintenance obligations, default provisions, and termination rights.

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Master Asset Finance Agreement

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What is a Master Asset Finance Agreement?

The Master Asset Finance Agreement is designed for situations where parties anticipate multiple asset financing transactions over time. This framework agreement, governed by English and Welsh law, streamlines the process by establishing standard terms that apply to all subsequent transactions, reducing negotiation time and documentation costs. It typically includes provisions for drawdown mechanisms, security arrangements, and operational requirements, while allowing flexibility for specific terms to be agreed for individual transactions through supplemental documentation.

What sections should be included in a Master Asset Finance Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Asset Description: Detailed description of assets being financed

5. Payment Terms: Financial terms, payment schedule, interest rates

6. Title and Risk: Ownership rights and risk allocation

7. Warranties and Representations: Statements of fact and promises by parties

8. Covenants: Ongoing obligations of parties

9. Events of Default: Circumstances constituting breach and remedies

10. Termination: Conditions and process for ending agreement

What sections are optional to include in a Master Asset Finance Agreement?

1. Insurance Requirements: Specific insurance obligations for assets requiring coverage

2. Security Provisions: Additional security arrangements when required beyond standard terms

3. Maintenance Requirements: Asset maintenance obligations for assets requiring specific maintenance protocols

What schedules should be included in a Master Asset Finance Agreement?

1. Asset Schedule: Detailed list and specifications of financed assets

2. Payment Schedule: Detailed payment terms and dates

3. Form of Drawdown Notice: Template for requesting funds

4. Condition Precedents: List of conditions to be met before agreement becomes effective

5. Form of Transfer Certificate: Template for transferring rights under the agreement

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

Financial Services and Markets Act 2000: Primary legislation regulating financial services and markets in the UK, including requirements for authorized persons/entities and consumer protection provisions

Consumer Credit Act 1974: Regulates credit agreements, including consumer protection measures and licensing requirements for consumer financing

Sale of Goods Act 1979: Governs rights and obligations in asset sales, including title, ownership provisions, and quality/fitness requirements

Supply of Goods and Services Act 1982: Covers service aspects of financing arrangements and quality of service provisions

FCA Regulations and Handbook: Regulatory framework including CONC (Consumer Credit sourcebook), PRIN (Principles for Businesses), and conduct of business rules

Financial Services (Distance Marketing) Regulations 2004: Regulations governing agreements concluded at distance

Unfair Contract Terms Act 1977: Controls unfair terms in contracts and provides reasonableness test for contract terms

Consumer Rights Act 2015: Legislation covering unfair terms provisions and consumer protection measures

Money Laundering Regulations 2017: Regulations to prevent money laundering and terrorist financing in financial transactions

Data Protection Act 2018: UK implementation of GDPR, governing how personal data must be handled and protected

Financial Services (Banking Reform) Act 2013: Legislation implementing structural and cultural changes to the UK banking sector

Bills of Sale Acts: Historical legislation governing the transfer of personal chattels in security for loans

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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