This is a business to business loan agreement where the loan is secured against plant or machinery owned by the borrowing company. The agreement offers flexibility in that the lender may be a company or an individual and either the lender or the borrower may be based in the New Zealand or abroad. It primarily protects the interests of the lender with standard terms and a large menu of additional provisions.
About this document
Plant and machinery is often an ideal security against which to lend to a business. It is easy to establish ownership and value, difficult to “lose” (particularly if it is fixed) and usually critical to ongoing business.
It is usually easier to persuade directors to secure a loan against the assets of a business rather than a guarantee from a shareholder or director, and in case of default, it can be easier to pursue a business for debts than an individual.
There is no standard loan agreement template that fits all loans with no editing – every loan is different. This document is very flexible. The lender can be an individual or a business, the borrower can be in any business (and either as a company or a partnership) and the plant or machinery used for security could be anything from a microscope to a crane. You’ll find a large menu of provisions to suit your needs when the terms are complex and more is at stake, without needing to worry about the legal wording.
When to use this secured loan agreement
The lender may be a business or an individual
The borrower may be in any industry, and be a company or a partnership
The collateral can be any type and any value: loose or fixed plant or machinery
Suitable for any size of loan
Either or both parties may be in the New Zealand or abroad
Flexible for loans of any size and repayment terms of any complexity
Agreement features
Standard terms to protect both parties, especially the lender
Comprehensive provisions menu from which you can choose
Provides for alternative draw down arrangements and provision of information to the lender
Contents
Structure of the loan;
Alternative draw down arrangements;
Provisions of periodic information to lender to allow valuation;
Repayment and interest payment arrangements;
Early repayment;
Provision for default situations;
Extensive menu of borrower's warranties;
Matters after termination;
Other legal provision to protect your interests.
Word
Count (approximate):
Document: 2915
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Explanatory notes:
630
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Draftsman
This document is drawn and maintained by Net Lawman. It is real law in plain English.
