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Addendum Loan Agreement for the United Kingdom

Addendum Loan Agreement Template for United States

A Loan Agreement Addendum is a legal document used in the United States to modify, amend, or supplement an existing loan agreement. It allows parties to change specific terms of the original loan agreement while keeping other terms intact. The document must comply with federal regulations including TILA and state-specific lending laws, particularly regarding interest rates and consumer protection. It serves as a formal amendment to the original agreement, documenting changes in payment terms, interest rates, security, or other loan conditions.

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What is a Addendum Loan Agreement?

A Loan Agreement Addendum is utilized when parties need to modify terms of an existing loan agreement without creating an entirely new contract. This document type is commonly used in the United States when circumstances require adjustments to payment schedules, interest rates, or loan security arrangements. The addendum must carefully balance compliance with federal regulations (such as TILA and ECOA) and state-specific lending laws while clearly documenting the agreed changes. It's particularly important in situations where loan restructuring is needed due to changed circumstances or when additional terms need to be incorporated into the original agreement.

What sections should be included in a Addendum Loan Agreement?

1. Parties: Identification of original parties and any new parties to the loan agreement

2. Background: Reference to original loan agreement and reason for addendum

3. Definitions: Key terms used in the addendum, including reference to original definitions

4. Amendments: Specific modifications to original agreement terms

5. Confirmation: Confirmation that all other terms remain unchanged

6. Execution: Signature blocks and date of effect

What sections are optional to include in a Addendum Loan Agreement?

1. Additional Security: Section detailing new collateral or security arrangements when loan security is being modified

2. Interest Rate Modification: Section specifying changes to interest rate terms and calculations

3. Payment Schedule Changes: Section outlining modifications to payment terms and schedule

4. Additional Covenants: Section detailing new borrower obligations and conditions

What schedules should be included in a Addendum Loan Agreement?

1. Schedule A - Amended Payment Schedule: Updated amortization schedule if payment terms are modified

2. Schedule B - Additional Security Details: Description of any new collateral being added

3. Schedule C - Modified Terms Summary: Summary of all changes made to original agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use

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