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Building Loan Agreement
"I need a Building Loan Agreement for a HKD 500 million green office building development in Kowloon, Hong Kong, which requires LEED certification and includes specific environmental compliance conditions."
1. Parties: Identification of the lender(s) and borrower(s), including their registered addresses and company details
2. Background: Context of the agreement, including brief description of the project and purpose of the loan
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Loan Facility: Details of the loan amount, purpose, and facility type
5. Conditions Precedent: Conditions that must be satisfied before the loan becomes available
6. Drawdown Provisions: Terms and procedures for drawing down the loan, including construction milestones
7. Interest and Fees: Interest rate, calculation method, fees, and payment terms
8. Repayment Terms: Repayment schedule, methods, and prepayment provisions
9. Security: Details of security arrangements, including property mortgage and other collateral
10. Construction Covenants: Borrower's obligations regarding construction, including timelines and standards
11. Representations and Warranties: Standard and specific representations by the borrower
12. Borrower Covenants: General and financial covenants the borrower must maintain
13. Events of Default: Circumstances constituting default and consequences
14. Monitoring and Reporting: Requirements for progress reports and lender's inspection rights
15. General Provisions: Standard clauses including notices, amendments, and governing law
1. Multiple Lenders Provisions: Required when there are multiple lenders, covering voting rights and agent's role
2. Cost Overrun Facility: Additional facility to cover potential construction cost overruns
3. Green Building Requirements: Specific requirements if the project aims for green building certification
4. Insurance Requirements: Detailed insurance obligations beyond standard requirements
5. Property Management: Post-completion property management requirements if required by lender
6. Pre-sale Arrangements: If the project involves pre-sale of units
7. Contractor Direct Agreement: When direct agreements with main contractors are required
8. Guarantees: When additional personal or corporate guarantees are required
1. Schedule 1 - Property Details: Detailed description of the property and building plans
2. Schedule 2 - Construction Schedule: Detailed construction timeline and milestones
3. Schedule 3 - Drawdown Schedule: Specific drawdown conditions and amounts linked to construction milestones
4. Schedule 4 - Form of Drawdown Request: Template for drawdown requests
5. Schedule 5 - Security Documents: List and copies of all security documents
6. Schedule 6 - Required Insurances: Detailed list of required insurance policies
7. Schedule 7 - Form of Progress Report: Template for construction progress reports
8. Schedule 8 - Permitted Security Interests: List of pre-approved security interests
9. Appendix A - Construction Specifications: Detailed technical specifications for the building
10. Appendix B - Professional Team: Details of architects, engineers, and other professional consultants
Authors
Banking & Financial Services
Real Estate Development
Construction
Property Investment
Architecture & Design
Legal Services
Insurance
Property Management
Urban Planning
Legal
Real Estate Finance
Construction Management
Risk & Compliance
Property Development
Commercial Banking
Technical Services
Project Management
Credit Risk
Operations
Chief Financial Officer
Real Estate Finance Manager
Construction Project Manager
Legal Counsel
Property Development Director
Risk Manager
Facility Manager
Commercial Banking Manager
Construction Finance Specialist
Property Investment Manager
Compliance Officer
Technical Director
Senior Architect
Quantity Surveyor
Development Manager
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