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Security Loan Agreement Template for India

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Key Requirements PROMPT example:

Security Loan Agreement

"I need a Security Loan Agreement under Indian law for a INR 50 crore loan from our bank to a technology company, secured by listed securities and a corporate guarantee, with quarterly interest payments and a maturity date of March 15, 2025."

Document background
The Security Loan Agreement is a crucial document used in Indian financial transactions where a lender provides funding against specific security collateral. This agreement is essential when parties wish to establish a secured lending arrangement, whether for corporate funding, asset financing, or other commercial purposes. The document comprehensively addresses the creation, perfection, and enforcement of security interests under Indian law, incorporating requirements from various regulations including the SARFAESI Act, Indian Contract Act, and Securities Contracts (Regulation) Act. It is particularly relevant in scenarios involving listed securities, financial assets, or other valuable collateral where the lender requires a robust security structure to protect their interests. The agreement must comply with Reserve Bank of India guidelines and SEBI regulations, making it suitable for both institutional and private lending arrangements where security is a key component of the transaction.
Suggested Sections

1. Parties: Identifies and defines the lender and borrower with complete legal names and addresses

2. Background: Explains the context and purpose of the loan agreement and security arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and rules of interpretation

4. Loan Amount and Purpose: Specifies the loan amount, currency, and permitted purpose of the loan

5. Security: Details the nature and extent of security being provided, including creation and perfection requirements

6. Conditions Precedent: Lists conditions that must be satisfied before the loan can be drawn

7. Repayment Terms: Specifies repayment schedule, interest rates, and payment mechanisms

8. Representations and Warranties: Sets out statements of fact and assurances given by the borrower

9. Covenants: Details positive and negative obligations of the borrower during the loan term

10. Security Maintenance: Provisions for maintaining, monitoring, and adjusting security value

11. Events of Default: Lists circumstances that constitute default and their consequences

12. Enforcement Rights: Details lender's rights and remedies upon default

13. Notices: Specifies how formal communications between parties should be made

14. Governing Law and Jurisdiction: Specifies Indian law as governing law and jurisdiction for disputes

15. Miscellaneous: Contains standard boilerplate provisions including amendments, waivers, and severability

Optional Sections

1. Guarantee: Required when a third party is providing a guarantee for the loan

2. Security Trustee Provisions: Needed when multiple lenders are involved and a security trustee is appointed

3. Tax Provisions: Detailed tax clauses needed for cross-border transactions or specific tax structures

4. Insurance: Detailed insurance requirements when security includes physical assets

5. Security Margin Maintenance: Required for loans against market-linked securities with fluctuating values

6. Currency Provisions: Required for loans involving foreign currency or multiple currencies

7. Additional Security Provider: Needed when security is provided by a party other than the borrower

Suggested Schedules

1. Schedule 1 - Security Details: Detailed description of all security assets including identification numbers, certificates, or property details

2. Schedule 2 - Repayment Schedule: Detailed breakdown of repayment dates and amounts

3. Schedule 3 - Conditions Precedent Documents: List of all documents required before loan disbursement

4. Schedule 4 - Form of Security Documents: Standard forms for creation of security interests

5. Schedule 5 - Form of Notices: Standard forms for various notices required under the agreement

6. Schedule 6 - Security Margin Requirements: Details of minimum security coverage ratios and valuation methods

7. Appendix A - Power of Attorney: Format of power of attorney for security enforcement

8. Appendix B - Compliance Certificates: Format of periodic compliance certificates to be submitted by borrower

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































Clauses






























Relevant Industries

Banking & Financial Services

Investment Banking

Asset Management

Securities Trading

Corporate Finance

Real Estate

Manufacturing

Technology

Infrastructure

Retail

Healthcare

Energy

Agriculture

Transportation & Logistics

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Credit

Operations

Corporate Finance

Investment

Documentation

Loan Administration

Security Operations

Corporate Secretarial

Relevant Roles

Chief Financial Officer

Legal Counsel

Finance Director

Compliance Officer

Risk Manager

Credit Manager

Treasury Manager

Investment Manager

Corporate Lawyer

Security Trustee

Loan Officer

Portfolio Manager

Company Secretary

Financial Controller

Operations Manager

Relationship Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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