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Hard Money Loan Agreement
"I need a Hard Money Loan Agreement for a €500,000 loan secured against a commercial property in Dublin, with a 12% interest rate and 18-month term starting March 2025, including construction draw provisions as the property will undergo renovation."
1. Parties: Identifies the lender, borrower, and any guarantors with their full legal names and addresses
2. Background: Sets out the context of the loan agreement and the parties' intention to enter into the lending arrangement
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use
5. Interest Rate and Fees: Details the interest rate, calculation method, and any associated fees
6. Security: Describes the property or assets being used as collateral for the loan
7. Repayment Terms: Outlines the repayment schedule, payment methods, and prepayment provisions
8. Conditions Precedent: Lists conditions that must be satisfied before the loan is advanced
9. Representations and Warranties: States the borrower's assertions about their legal capacity and the security property
10. Covenants: Sets out ongoing obligations of the borrower during the loan term
11. Events of Default: Defines circumstances constituting default and the lender's remedies
12. Enforcement Rights: Details the lender's rights and remedies upon default
13. Costs and Expenses: Allocates responsibility for legal fees, registration costs, and other expenses
14. Notices: Specifies how formal communications between parties should be made
15. Governing Law and Jurisdiction: Confirms Irish law governs the agreement and Irish courts have jurisdiction
1. Guarantees: Required when there are third-party guarantors securing the loan obligations
2. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required for the security property
3. Property Management: Include when the lender requires specific maintenance or management of the security property
4. Cross-Collateralization: Used when multiple properties secure the loan or when securing multiple loans
5. Construction Draws: Required for loans involving property renovation or construction
6. Assignment and Transfer: Include when the lender wants the right to assign or transfer the loan
7. Personal Guarantee Provisions: Required when personal guarantees are part of the security structure
1. Schedule 1 - Property Details: Detailed description of the security property including title information and encumbrances
2. Schedule 2 - Payment Schedule: Detailed repayment schedule including dates and amounts
3. Schedule 3 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown
4. Schedule 4 - Form of Drawdown Notice: Template for the borrower to request loan disbursement
5. Schedule 5 - Insurance Requirements: Detailed specifications for required insurance coverage
6. Appendix A - Form of Security Documents: Templates for property charges and security documentation
7. Appendix B - Form of Guarantee: Template guarantee agreement for use by guarantors
8. Appendix C - Valuation Report Requirements: Specifications for property valuation reports
Authors
Real Estate
Private Lending
Property Development
Construction
Investment
Financial Services
Private Banking
Commercial Property
Residential Property
Legal
Finance
Risk Management
Compliance
Real Estate
Credit
Investment
Business Development
Operations
Property Management
Legal Counsel
Property Developer
Real Estate Investor
Finance Manager
Loan Officer
Mortgage Broker
Risk Manager
Compliance Officer
Real Estate Attorney
Investment Manager
Property Manager
Financial Advisor
Credit Analyst
Portfolio Manager
Business Development Manager
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