Document background
The Loan Market Agreement serves as the primary documentation for commercial lending transactions in New Zealand's financial markets. This document type is utilized when establishing credit facilities between financial institutions and corporate borrowers, typically for amounts exceeding NZD 5 million. The agreement follows established market practices while incorporating specific requirements of New Zealand law, including compliance with the Financial Markets Conduct Act 2013 and related regulations. The document comprehensively covers facility terms, conditions precedent, representations and warranties, covenants, events of default, and security arrangements. It is structured to accommodate both bilateral and syndicated lending arrangements, with flexibility to include additional features such as multiple tranches, revolving facilities, or term loans. The agreement provides a robust framework for managing the ongoing relationship between lenders and borrowers while ensuring enforceability under New Zealand jurisdiction.
