Contents of A Loan Agreement (Document your own loan today at www.documentyourloan.com)

Forms of loan agreements vary tremendously from country to country, but characteristically a professionally drafted commercial loan agreement will incorporate the following terms:

1. Parties to contracts with their addresses
2. Definitions or interpretation provisions
3. Facility and purpose[1]
4. Conditions precedent to utilisation
5. Repayment provisions
6. Prepayment and cancellation provisions
7. Interest and interest periods
8. Provisions dealing with gross-up in relation to any withholding imposed
9. Increased cost formulae
10. Payments provisions
11. Representations of the borrower
12. Covenants of the borrower[2]
13. Events of default
14. Remedies in the event of default
15. Provisions for penalties and liquidated damages
16. For syndicated loans, provisions relating to the facility agent and security agent and voting of the lenders
17. Formulae for calculations
18. Provisions for fees of the lenders
19. Provisions for expenses
20. Securitization provisions
21. Amendments and waivers provisions
22. Covenants relating to changes in parties
23. Set-off clause
24. Severability clause
25. Counterparts clause
26. Addresses for notices
27. Language provisions
28. Choice of law clause
29. Forum selection clause
30. Appointment of a process agent