Loan Agreement: secured

Loan Agreement: secured

Secured loan facility agreement template for a term loan to a corporate borrower 

Background

Why use a term loan?

A term loan is an upfront loan to a borrower, repayable with interest at a fixed or floating rate on a fixed repayment date or over a certain repayment schedule.

A term loan is often used by a business to purchase specified property or other fixed assets, such as equipment.  

About this Loan Agreement

This loan agreement is for a secured loan of a fixed amount to a corporate borrower.  It is suitable for a borrower which is incorporated in England and Wales.

The security would need to be created and governed by a separate security document between the borrower and the lender, depending on the nature of the secured property and assets.  Examples of security documents include:

• a charge over specified property
• a charge over shares
• a debenture, containing fixed and floating charges over all of the borrower’s assets and undertaking

Document features

Features include:

• 21 clauses over 13 pages
• Upfront advance of specified loan amount
• Regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
• Repayment either on a single repayment date or in instalments
• Undertakings to the borrower, including the provision of information to the lender and prohibition on granting security and additional borrowings
• Events of default

Explanatory guidance

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

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