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Deed Of Trust Loan Agreement Template for Malaysia

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Key Requirements PROMPT example:

Deed Of Trust Loan Agreement

"I need a Deed of Trust Loan Agreement for a RM 5 million corporate loan between ABC Bank Berhad as lender and XYZ Manufacturing Sdn Bhd as borrower, with three trustees from Malaysian Trust Corporation to manage the security assets, to be executed by March 2025."

Document background
The Deed of Trust Loan Agreement is a specialized legal instrument used in Malaysia when parties wish to structure a loan arrangement through a trust mechanism. This document is particularly relevant in situations requiring additional security or specific asset management arrangements, such as family wealth management, corporate financing, or property development funding. The agreement combines elements of traditional loan documentation with trust provisions, ensuring compliance with Malaysian banking, trust, and securities regulations. It's commonly used when there's a need to separate legal and beneficial ownership of assets while facilitating loan arrangements. The document includes comprehensive details about loan terms, trust property management, security arrangements, and the duties of all parties involved. The Deed of Trust Loan Agreement must comply with Malaysian legislation including the Trustees Act 1949, Contracts Act 1950, and where applicable, the Islamic Financial Services Act 2013.
Suggested Sections

1. Parties: Identifies and defines the Lender, Borrower, and Trustee(s), including their full legal names, registration/identification numbers, and addresses

2. Background: Sets out the context of the agreement, including the purpose of the loan and the reason for the trust structure

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules of interpretation

4. Trust Declaration: Formally establishes the trust arrangement, defining the trust property and beneficiaries

5. Loan Amount and Purpose: Specifies the principal amount of the loan and its approved purpose

6. Interest and Repayment Terms: Details the interest rate, calculation method, repayment schedule, and payment mechanisms

7. Trustee Powers and Duties: Outlines the specific powers granted to the trustee and their responsibilities in managing the trust

8. Security and Enforcement: Describes any security provided for the loan and the enforcement mechanisms available

9. Representations and Warranties: Contains statements of fact and assurances from all parties

10. Covenants: Sets out ongoing obligations of the parties, including positive and negative covenants

11. Events of Default: Lists circumstances that constitute default and the consequences thereof

12. Termination: Specifies how and when the trust and loan agreement can be terminated

13. Governing Law and Jurisdiction: Confirms Malaysian law as governing law and specifies jurisdiction for dispute resolution

Optional Sections

1. Islamic Finance Compliance: Required when the loan needs to comply with Shariah principles

2. Guarantee Provisions: Included when there are third-party guarantors for the loan

3. Assignment and Transfer: Needed when parties want to allow for potential transfer of rights or obligations

4. Tax Provisions: Required when specific tax arrangements or implications need to be addressed

5. Multiple Trustees Provisions: Included when there is more than one trustee, defining their relationship and decision-making process

6. Trust Property Management: Required when the trust involves active management of assets beyond holding loan security

7. Foreign Currency Provisions: Needed when the loan is denominated in a currency other than Malaysian Ringgit

Suggested Schedules

1. Schedule 1 - Loan Terms: Detailed breakdown of loan amount, interest calculations, and repayment schedule

2. Schedule 2 - Security Details: Comprehensive description of all security assets and their valuation

3. Schedule 3 - Trust Property: Detailed listing and description of all assets held in trust

4. Schedule 4 - Fee Structure: Breakdown of all fees including trustee fees, administration charges, and other costs

5. Schedule 5 - Conditions Precedent: List of conditions that must be satisfied before the loan is disbursed

6. Appendix A - Form of Drawdown Notice: Template for requesting loan disbursements

7. Appendix B - Repayment Schedule: Detailed amortization schedule showing all payment dates and amounts

8. Appendix C - Required Authorizations: List of all required permits, consents, and authorizations

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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Relevant Industries

Banking & Financial Services

Real Estate & Property

Islamic Finance

Investment Management

Corporate Finance

Trust Services

Wealth Management

Legal Services

Family Business

Private Banking

Relevant Teams

Legal

Compliance

Finance

Risk Management

Corporate Secretarial

Credit Administration

Trust Administration

Wealth Management

Islamic Banking

Corporate Banking

Property Management

Investment Management

Relevant Roles

Legal Counsel

Trust Officer

Loan Officer

Compliance Manager

Financial Controller

Risk Manager

Company Secretary

Corporate Lawyer

Banking Executive

Trust Administrator

Credit Manager

Investment Manager

Wealth Management Advisor

Islamic Finance Specialist

Property Manager

Corporate Trustee

Financial Advisor

Legal Director

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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