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.

Loan Agreement: unsecured

Name: Business Loan Agreement Template UK - unsecured fixed amount
SKU: FIN001.001
Price: 35.00 GBP
Availability: InStock

Loan agreement for an unsecured loan of a fixed amount to a corporate borrower which is incorporated in England and Wales, to be drawn in a single advance and repayable either on a single repayment date or in instalments.

for an unsecured loan of a fixed amount to be drawn in a single advance
for a borrower which is a company incorporated in England and Wales
for a loan repayable on a single repayment date or in instalments

What are the key features?

21 clauses over 13 pages
single advance of the total amount of the loan money to the borrower
unsecured loan
regular interest payments at either fixed or floating interest rate by reference to specified bank’s base rate of interest
repayment terms, with repayment either on a single repayment date or in instalments
undertakings from the borrower, including to provide information to the lender lending money (such as copies of its financial statements) and prohibitions on granting security and additional borrowings
events of default, including if the borrower fails to repay the loan or interest and other borrower defaults, leading to the lender having the right to demand immediate repayment

What other documents are available?

For a form of secured loan agreement template, under which the borrower secures its obligations to the lender by granting a charge or other form of security, see

Loan Agreement: secured

For forms of unsecured and secured facility agreements

If a director or shareholder of the borrower will personally guarantee the obligations of the borrower, see Guarantee: individual guarantor

Description

When do I use this document?

if a shareholder has lost its original share certificate or it has been destroyed
if applicable, alongside a transfer of the shares covered by the lost or destroyed original certificate

What are the key features?

different forms of indemnity, depending on whether the shareholder is also transferring shares
alternative forms of indemnity, depending on whether the shareholder is an individual or a company

What else do I need to know?

What is a share certificate?

A share certificate is a document evidencing ownership of shares in a company. By law, shareholders are entitled to receive this certificate when they acquire shares, either through allotment or transfer.

What happens if a share certificate is lost or destroyed?

If a shareholder loses or destroys their certificate, they can ask the company for a replacement. To safeguard itself, the company will usually require a lost share certificate indemnity. This is a legal undertaking under which the shareholder agrees to cover any losses the company might face by issuing the replacement.

What risks does the indemnity protect against?

The indemnity protects the company from risks such as:

Duplicate Claims: If the original certificate reappears, someone else might claim ownership, causing disputes or financial loss.
Fraudulent Claims: A person could falsely claim to have lost the certificate and misuse the replacement, for example, by attempting to sell the shares unlawfully.
Administrative Errors: Mistakes in issuing a replacement or registering a transfer without the original certificate could lead to legal administrative errors.
Legal Liability: If a replacement certificate or transfer is improperly handled, the company might be held responsible for resulting losses.

Explanatory Guides

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

£35.00 exc VAT

Updated by a lawyer on 02/09/2024

Updated By a lawyer on 01/05/2023

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Loan Agreement: unsecured