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Master Lending Agreement for Malaysia

Master Lending Agreement Template for Malaysia

A comprehensive legal framework governed by Malaysian law that establishes the terms and conditions for multiple lending facilities between a financial institution and a borrower. This agreement serves as the primary document governing all subsequent loan facilities, incorporating both conventional and Islamic banking provisions where necessary. It includes detailed terms for drawdown mechanics, repayment obligations, security arrangements, representations and warranties, and covenant packages, all structured to comply with Malaysian banking regulations and financial services laws.

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Master Lending Agreement

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What is a Master Lending Agreement?

The Master Lending Agreement serves as the cornerstone document for establishing a long-term lending relationship between financial institutions and borrowers in Malaysia. This agreement is particularly useful when multiple loan facilities are contemplated over time, as it provides a standardized framework that streamlines future lending arrangements. The document incorporates provisions compliant with Malaysian banking regulations, including both conventional and Islamic banking requirements where applicable. It typically includes comprehensive terms covering facility utilization, security arrangements, borrower obligations, and enforcement mechanisms, while allowing flexibility for specific facility terms to be documented in supplemental agreements. The Master Lending Agreement is designed to accommodate various types of financing needs while maintaining consistency in the fundamental lending relationship.

What sections should be included in a Master Lending Agreement?

1. Parties: Identification of the lender and borrower, including registration details and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the master facility

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. Facility Terms: General terms applicable to all facilities under the master agreement

5. Conditions Precedent: Prerequisites that must be satisfied before any facility can be utilized

6. Drawdown Mechanics: Procedures and requirements for requesting and obtaining loans under the facilities

7. Interest and Fees: Calculation and payment of interest, fees, and other charges

8. Repayment Terms: General repayment obligations and mechanisms

9. Representations and Warranties: Standard representations and warranties given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the facility period

11. Events of Default: Circumstances constituting default and consequences thereof

12. Security: General security provisions and principles

13. Payments and Calculations: Payment mechanics, currency provisions, and calculation conventions

14. Changes to Parties: Transfer and assignment provisions

15. Administration: Administrative provisions including notices and amendments

16. Governing Law and Jurisdiction: Choice of Malaysian law and jurisdiction provisions

What sections are optional to include in a Master Lending Agreement?

1. Islamic Banking Provisions: Additional provisions for Shariah-compliant facilities, required when Islamic banking facilities are contemplated

2. Syndication Provisions: Required when multiple lenders are involved or syndication is contemplated

3. Increased Costs and Tax Provisions: Detailed provisions for managing changes in regulatory costs and tax implications, particularly relevant for international borrowers

4. Multi-currency Provisions: Required when facilities may be drawn in multiple currencies

5. Security Trustee Provisions: Required when security is held by a security trustee on behalf of multiple lenders

6. Force Majeure: Specific provisions for unforeseen circumstances affecting the facility, particularly relevant in light of recent global events

What schedules should be included in a Master Lending Agreement?

1. Form of Drawdown Request: Standard form for requesting drawdown under the facilities

2. Form of Compliance Certificate: Template for periodic compliance certification by the borrower

3. Conditions Precedent Documents: Detailed list of required documents and conditions

4. Calculation of Interest and Fees: Detailed methodology for calculating various interest rates and fees

5. Form of Accession Deed: Template for new parties joining the facility

6. Security Documents: List and forms of required security documents

7. Facility Specific Terms: Specific terms and conditions for each type of sub-facility

8. Approved Security Providers: List of pre-approved security providers and their requirements

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

Malaysia

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions











































Clauses































Relevant Industries

Banking

Financial Services

Corporate Finance

Real Estate

Manufacturing

Infrastructure

Energy

Technology

Healthcare

Retail

Transportation

Agriculture

Construction

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Credit Risk

Corporate Banking

Islamic Banking

Operations

Documentation

Risk Management

Corporate Finance

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Relationship Manager

Corporate Banking Officer

Islamic Banking Officer

Loan Officer

Security Documentation Officer

Financial Controller

Company Secretary

Chief Legal Officer

Banking Operations Manager

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, 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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