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The Shareholder Loan Promissory Note is a crucial document in Australian corporate finance, commonly used when a shareholder provides funding to a company instead of seeking external financing. This document type is particularly relevant when companies need additional working capital, funding for expansion, or bridge financing. It creates a formal debt obligation that complies with Australian corporate law and tax requirements, protecting both the lending shareholder and the borrowing company. The note typically includes essential terms such as the loan amount, interest rate, repayment schedule, and any security arrangements. It's especially important for proper corporate governance and maintaining clear financial records that satisfy regulatory requirements, including those under the Corporations Act 2001 (Cth).

1. Parties: Identification of the Lender (Shareholder) and Borrower (Company), including full legal names, ACN/ABN, and registered addresses

2. Background: Context of the shareholder loan arrangement and relationship between the parties

3. Definitions: Key terms used throughout the document, including 'Business Day', 'Interest Rate', 'Loan Amount', 'Maturity Date'

4. Loan Amount and Disbursement: Specification of the principal amount and how/when it will be provided

5. Interest: Interest rate, calculation method, and payment frequency

6. Repayment Terms: Schedule of repayments, including maturity date and any installment requirements

7. Payment Mechanics: Details of how payments should be made, including account details and payment methods

8. Events of Default: Circumstances that constitute default and consequences thereof

9. Representations and Warranties: Basic representations about capacity to enter agreement and validity of obligations

10. Governing Law and Jurisdiction: Specification of Australian law as governing law and jurisdiction for disputes