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Forward Funding Agreement Template for Singapore

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Key Requirements PROMPT example:

Forward Funding Agreement

"Need a Forward Funding Agreement for a mixed-use development project in Singapore's CBD area, with staged funding of SGD 150 million to be released between January 2025 and December 2025, including profit-sharing provisions and step-in rights for the funder."

What is a Forward Funding Agreement?

Forward Funding Agreements are crucial instruments in Singapore's development finance landscape, used when a funder wishes to finance a development project through staged payments. These agreements are particularly relevant for large-scale commercial, residential, or mixed-use developments where traditional financing methods may not be suitable. A Forward Funding Agreement sets out the complete framework for the funding relationship, including payment mechanics, conditions precedent, development obligations, and security arrangements. Under Singapore law, these agreements must be carefully structured to comply with banking, securities, and property regulations while providing adequate protection for all parties involved.

What sections should be included in a Forward Funding Agreement?

1. Parties: Details of the funder and developer/recipient

2. Background: Context of the transaction and project overview

3. Definitions: Key terms used throughout the agreement

4. Funding Obligations: Core funding commitments, amounts, and timing

5. Conditions Precedent: Prerequisites for funding drawdown

6. Project Milestones: Key development stages and completion requirements

7. Payment Mechanics: Process for drawdown requests and disbursements

8. Representations and Warranties: Standard and transaction-specific assurances

9. Covenants: Ongoing obligations of parties

10. Events of Default: Circumstances triggering default and remedies

What sections are optional to include in a Forward Funding Agreement?

1. Security Arrangements: Details of any security package - include when security is required for the funding

2. Cost Overrun Provisions: Handling of project cost overruns - include for larger development projects

3. Step-In Rights: Funder's rights to take control of project - include for high-value or critical projects

4. Profit Share Arrangements: Terms for sharing project profits - include when profit sharing is part of the arrangement

What schedules should be included in a Forward Funding Agreement?

1. Project Details: Detailed description of the development project

2. Development Programme: Timeline and milestones for the project

3. Drawdown Schedule: Planned timing and amounts of funding releases

4. Form of Drawdown Notice: Template for requesting funds

5. Form of Certificates: Ƶ for various required certificates

6. Security Documents: Forms of any security arrangements

Authors

Alex Denne

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

Relevant legal definitions

















































Clauses




































Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation and enforcement, including requirements for valid contracts, rules regarding consideration and contractual obligations

Civil Law Act (Cap. 43): Contains provisions relating to contracts and property, including rules on interest rates and contractual penalties

Securities and Futures Act (Cap. 289): Regulates securities and capital markets products, including licensing requirements and disclosure obligations for financial arrangements

Monetary Authority of Singapore (MAS) Guidelines: Regulatory framework covering banking regulations, capital requirements, and risk management requirements for financial institutions

Land Titles Act (Cap. 157): Governs property ownership and transfer rules, including registration requirements for real estate transactions

Planning Act (Cap. 232): Controls development and land use regulations for property development projects

Income Tax Act (Cap. 134): Covers tax treatment of forward funding arrangements, stamp duties, and GST implications

Anti-Money Laundering and CFT Requirements: Mandates due diligence requirements and reporting obligations for preventing money laundering and terrorism financing

Companies Act (Cap. 50): Regulates corporate authority and capacity, including directors' duties and corporate governance requirements

Insolvency, Restructuring and Dissolution Act 2018: Provides framework for corporate insolvency, security arrangements, and priority rules in case of default or bankruptcy

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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