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Secured Loan Note for Singapore

Secured Loan Note Template for Singapore

A Secured Loan Note under Singapore law is a formal debt instrument that evidences a loan agreement where the borrower's obligations are secured against specific assets or property. It combines elements of a promissory note with security arrangements, governed by Singapore's Securities and Futures Act and related legislation. The document details the loan terms, security arrangements, repayment schedule, and enforcement rights while complying with Singapore's strict regulatory requirements for secured lending.

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What is a Secured Loan Note?

The Secured Loan Note is a fundamental financing instrument in Singapore's commercial landscape, used when a lender requires security for their loan advancement. This document type combines the features of a standard loan agreement with security arrangements, creating a comprehensive framework for secured lending. The Secured Loan Note must comply with Singapore's robust regulatory framework, including the Securities and Futures Act and Companies Act, particularly regarding security creation, registration, and enforcement. It's commonly used in both corporate and individual lending scenarios where assets are available as security.

What sections should be included in a Secured Loan Note?

1. Parties: Identifies the lender and borrower with full legal names and addresses

2. Background: Sets out the context of the loan and security arrangement

3. Definitions: Defines key terms used throughout the document

4. Loan Amount and Purpose: Specifies the principal amount and permitted use of funds

5. Interest and Repayment Terms: Details interest rate, calculation method, and repayment schedule

6. Security: Describes the assets provided as security and creation of security interest

7. Representations and Warranties: Statements of fact by the borrower regarding their status and the security

8. Events of Default: Lists circumstances constituting default and consequences

What sections are optional to include in a Secured Loan Note?

1. Guarantee: Additional security provisions when there is a third-party guarantor

2. Insurance Requirements: Specific insurance requirements for secured assets when physical assets are involved

3. Financial Covenants: Financial ratios and requirements to be maintained by corporate borrowers

What schedules should be included in a Secured Loan Note?

1. Schedule 1 - Security Assets: Detailed description of assets provided as security

2. Schedule 2 - Repayment Schedule: Detailed payment dates and amounts

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before drawdown

4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursement

5. Appendix A - Security Documents: Forms of security documents including charges, pledges, and other security instruments

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

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions




































Clauses






























Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities offerings and trading, determining loan note classification as security, and establishing disclosure requirements

Companies Act (Cap. 50): Regulates creation and registration of charges, corporate borrowing powers, and related filing requirements with ACRA

Property Law Act (Cap. 242): Governs security interests in property and establishes requirements for creation of legal mortgages

Banking Act (Cap. 19): Regulatory framework for banks and financial institutions engaged in secured lending activities

Moneylenders Act (Cap. 188): Regulates moneylending activities, including licensing requirements and interest rate restrictions

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data in loan documentation

Stamp Duties Act: Determines applicable stamp duties on security documents and related instruments

Bankruptcy Act: Establishes creditor rights, enforcement mechanisms, and priority of security interests in insolvency scenarios

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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