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Tri Party Loan Agreement Template for England and Wales

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Key Requirements PROMPT example:

Tri Party Loan Agreement

"I need a Tri Party Loan Agreement for a £5 million secured facility between ABC Bank as lender, XYZ Manufacturing Ltd as borrower, and Global Security Trustees Ltd as security agent, with quarterly interest payments and a maturity date of March 2025."

What is a Tri Party Loan Agreement?

The Tri Party Loan Agreement is a specialized financial document used when a loan arrangement requires the involvement of three distinct parties, typically in complex financing scenarios. This agreement type is particularly common in secured lending transactions where a security trustee or agent is required to hold and manage security on behalf of the lender(s). Governed by English and Welsh law, which is widely recognized for its commercial predictability and fairness, this agreement encompasses detailed provisions for loan disbursement, security arrangements, repayment terms, and the specific roles and responsibilities of each party. It's particularly useful in syndicated lending, project finance, and other sophisticated financial transactions requiring third-party administration or security holding.

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

1. Parties: Identification and details of all three parties to the agreement

2. Background: Context and purpose of the loan agreement

3. Definitions: Key terms used throughout the agreement

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

5. Interest and Repayment Terms: Interest rate, calculation method, and repayment schedule

6. Conditions Precedent: Conditions that must be met before loan disbursement

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

8. Events of Default: Circumstances constituting default and consequences

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

1. Security: Details of any collateral or security arrangements when loan is secured

2. Guarantees: Terms of any guarantees provided when guarantee is part of arrangement

3. Insurance Requirements: Required insurance coverage when specific insurance is required

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

1. Schedule 1 - Loan Details: Detailed breakdown of loan amount, interest rates, and payment schedule

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

3. Schedule 3 - Security Details: Description of security or collateral (if applicable)

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

5. Schedule 5 - Form of Compliance Certificate: Template for periodic compliance reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Industries

Consumer Credit Act 1974: Primary legislation governing consumer credit agreements in England and Wales, crucial if any party is borrowing as a consumer

Financial Services and Markets Act 2000: Key legislation regulating financial services and markets in the UK, establishing regulatory framework for lending activities

Law of Property Act 1925: Fundamental legislation governing property rights and interests, relevant for secured lending aspects

Law of Property (Miscellaneous Provisions) Act 1989: Legislation covering formalities for creation of legal interests in property and contractual requirements

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, particularly relevant for tri-party agreements

FCA Regulations: Regulatory framework established by the Financial Conduct Authority for regulated lending activities

Consumer Credit Sourcebook (CONC): Detailed rules and guidance for firms engaged in consumer credit activities

Unfair Contract Terms Act 1977: Legislation controlling unfair terms in contracts, particularly excluding or limiting liability

Consumer Rights Act 2015: Legislation protecting consumer rights, relevant if any party is borrowing as a consumer

Misrepresentation Act 1967: Legislation governing remedies for misrepresentation in contracts

Limitation Act 1980: Legislation setting time limits for bringing legal claims relating to the agreement

Money Laundering Regulations 2017: Regulations requiring due diligence and verification procedures in financial transactions

Data Protection Act 2018 and GDPR: Legislation governing the processing and protection of personal data of the parties involved

Financial Services (Distance Marketing) Regulations 2004: Regulations governing financial services contracts made at a distance

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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