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Loan Master Agreement Template for United States

A Loan Master Agreement is a comprehensive legal document used in the United States that establishes the framework for current and future loan transactions between parties. It sets out the standard terms and conditions that will govern all subsequent loan facilities, including interest calculations, repayment terms, representations and warranties, covenants, and events of default. The agreement complies with U.S. federal and state lending regulations, including TILA, ECOA, and applicable usury laws.

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What is a Loan Master Agreement?

The Loan Master Agreement serves as the foundational document for establishing an ongoing lending relationship between parties. It is particularly useful when multiple loan facilities are anticipated over time, as it eliminates the need to negotiate standard terms for each transaction. This document, governed by U.S. law, includes essential provisions required by federal regulations such as the Truth in Lending Act and state-specific requirements. The agreement typically covers facility terms, interest calculations, representations, covenants, and default provisions, while allowing flexibility for specific terms to be set in subsequent facility agreements.

What sections should be included in a Loan Master Agreement?

1. Parties: Identification of lender and borrower with full legal details

2. Background: Context and purpose of the loan agreement

3. Definitions: Key terms used throughout the agreement

4. Facility Details: Loan amount, purpose, and basic terms

5. Interest and Fees: Interest calculation, payment terms, and applicable fees

6. Repayment Terms: Schedule and methods of repayment

7. Representations and Warranties: Statements of fact by borrower

8. Covenants: Ongoing obligations of the borrower

9. Events of Default: Circumstances constituting default and consequences

10. Governing Law: Applicable law and jurisdiction

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

1. Security: Details of any collateral - include for secured loans only

2. Guarantees: Third-party guarantees - include when guarantors are involved

3. Syndication Provisions: Terms for multiple lenders - include for syndicated loans

4. Tax Provisions: Detailed tax considerations - include for cross-border or complex transactions

What schedules should be included in a Loan Master Agreement?

1. Schedule 1 - Conditions Precedent: Documents and conditions required before drawdown

2. Schedule 2 - Form of Drawdown Notice: Template for requesting loan disbursements

3. Schedule 3 - Repayment Schedule: Detailed payment schedule if applicable

4. Schedule 4 - Form of Compliance Certificate: Template for periodic compliance reporting

5. Schedule 5 - Security Documents: Details of security arrangements if applicable

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

Document Type

Master Agreement

Cost

Free to use

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