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Group Loan Agreement Form Template for England and Wales

A Group Loan Agreement Form under English and Welsh law is a comprehensive legal document that facilitates lending arrangements between financial institutions and corporate group structures. It establishes the terms and conditions for multiple borrowers within the same corporate group to access loan facilities, including interest rates, repayment terms, security arrangements, and cross-guarantees. The agreement incorporates specific provisions required under English law and financial regulations, ensuring compliance with UK banking and corporate legislation.

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What is a Group Loan Agreement Form?

The Group Loan Agreement Form is essential when multiple companies within a corporate group require access to loan facilities under a single agreement. This document, governed by English and Welsh law, establishes a comprehensive framework for group borrowing, including facility amounts, security arrangements, cross-guarantees, and covenant packages. It ensures compliance with UK financial regulations while providing flexibility for different group entities to access funding. The agreement is particularly useful for corporate restructuring, expansion projects, or refinancing existing group debt.

What sections should be included in a Group Loan Agreement Form?

1. Parties: Identification of all lenders, borrowers, and guarantors in the group loan arrangement

2. Background: Context of the loan arrangement, group structure, and purpose of the facility

3. Definitions: Key terms and definitions used throughout the agreement including financial terms, parties, and technical concepts

4. Facility Details: Specifics of the loan facility including amount, purpose, availability period, and drawdown conditions

5. Interest and Fees: Interest rate calculations, payment dates, default interest, and all applicable fees and charges

6. Repayment Terms: Schedule and methods of repayment, prepayment provisions, and mandatory prepayment events

7. Representations and Warranties: Statements of fact and assurances from borrowers regarding their status, capacity, and financial condition

8. Covenants: Financial and operational obligations of the borrowers including information provision and restrictions on activities

9. Events of Default: Circumstances constituting default and consequences, including acceleration rights and enforcement measures

What sections are optional to include in a Group Loan Agreement Form?

1. Security Provisions: Details of any security arrangements, ranking, and enforcement rights (include when loan is secured)

2. Guarantees: Terms of any guarantees provided by group companies or third parties (include when guarantors are involved)

3. Syndication Provisions: Terms for loan syndication, transfer provisions, and voting mechanisms (include for syndicated facilities)

4. Intercreditor Provisions: Ranking and priority between different creditors (include when multiple lenders or debt types exist)

What schedules should be included in a Group Loan Agreement Form?

1. Schedule 1 - The Original Parties: Complete details of all original lenders, borrowers, and guarantors including registration information

2. Schedule 2 - Conditions Precedent: List of all documents and conditions required before initial and subsequent drawdowns

3. Schedule 3 - Utilisation Request Form: Standard form for requesting loan drawdowns including required information and notice periods

4. Schedule 4 - Repayment Schedule: Detailed repayment dates and amounts for term loan facilities

5. Schedule 5 - Security Documents: List and copies of all security documentation including charges and guarantees

6. Schedule 6 - Form of Transfer Certificate: Standard form for transferring loan commitments between lenders

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

England and Wales

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use

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