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Loan Receipt Agreement Template for Malaysia

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Key Requirements PROMPT example:

Loan Receipt Agreement

"I need a Loan Receipt Agreement for a secured business loan of RM 500,000 to be repaid over 36 months, with the borrower's manufacturing equipment serving as collateral and a fixed interest rate of 6% per annum, with the first disbursement scheduled for March 1, 2025."

Document background
The Loan Receipt Agreement is a crucial legal document used in Malaysian lending transactions to formally acknowledge the receipt of loan funds and establish the contractual relationship between the lender and borrower. This document is essential when any party provides a loan and requires formal documentation of the transaction, whether in commercial, corporate, or personal contexts. It includes detailed information about the loan amount, interest rates, repayment terms, security (if any), and the rights and obligations of all parties involved. The agreement must comply with Malaysian financial regulations, including the Contracts Act 1950, Moneylenders Act 1951, and other relevant legislation. The Loan Receipt Agreement serves as both evidence of the debt and a legally binding contract that can be enforced in Malaysian courts if necessary.
Suggested Sections

1. Parties: Identifies and provides full details of the lender and borrower

2. Background: Explains the context of the loan and the parties' intention to enter into the agreement

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: Details the applicable interest rate, calculation method, and payment frequency

6. Repayment Terms: Outlines the repayment schedule, payment amounts, and payment methods

7. Representations and Warranties: States the parties' declarations regarding their capacity and authority to enter into the agreement

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

9. Remedies: Specifies the lender's rights and remedies in case of default

10. Notices: Sets out how formal communications between parties should be made

11. Governing Law: Confirms Malaysian law as governing law and jurisdiction

Optional Sections

1. Security: Required when the loan is secured against specific assets or property

2. Guarantor Provisions: Included when a third party guarantees the loan repayment

3. Prepayment Terms: Details early repayment options and any associated penalties

4. Insurance Requirements: Included when specific insurance coverage is required for secured assets

5. Assignment and Transfer: Required when either party needs the right to transfer their rights or obligations

6. Force Majeure: Optional clause protecting parties from unforeseeable circumstances preventing performance

7. Confidentiality: Required when parties need to maintain confidentiality of loan terms

Suggested Schedules

1. Schedule 1 - Repayment Schedule: Detailed breakdown of payment dates, amounts, and allocation between principal and interest

2. Schedule 2 - Security Details: Description and particulars of any assets provided as security

3. Schedule 3 - Conditions Precedent: List of documents and conditions required before loan disbursement

4. Appendix A - Form of Disbursement Request: Standard form for requesting loan disbursement

5. Appendix B - Specimen Signatures: Authorized signatures for loan-related documentation

6. Appendix C - Key Information Sheet: Summary of key loan terms and conditions as required by Malaysian regulations

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



































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Relevant Industries

Banking & Financial Services

Real Estate

Manufacturing

Construction

Retail

Agriculture

Technology

Healthcare

Education

Small and Medium Enterprises

Transportation & Logistics

Relevant Teams

Legal

Finance

Credit

Risk Management

Compliance

Treasury

Corporate Secretarial

Operations

Collections

Business Development

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Credit Manager

Loan Officer

Risk Manager

Compliance Officer

Treasury Manager

Account Manager

Financial Controller

Business Development Manager

Corporate Secretary

Legal Manager

Collections 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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