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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."
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
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
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
Banking & Financial Services
Investment Banking
Asset Management
Securities Trading
Corporate Finance
Real Estate
Manufacturing
Technology
Infrastructure
Retail
Healthcare
Energy
Agriculture
Transportation & Logistics
Legal
Finance
Compliance
Risk Management
Treasury
Credit
Operations
Corporate Finance
Investment
Documentation
Loan Administration
Security Operations
Corporate Secretarial
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
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