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Equipment Finance Agreement Template for Nigeria

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Key Requirements PROMPT example:

Equipment Finance Agreement

"I need an Equipment Finance Agreement for financing three construction cranes worth NGN 500 million for my Lagos-based construction company, with quarterly payments over 5 years starting March 2025, including specific provisions for equipment maintenance and operator training."

Document background
The Equipment Finance Agreement serves as a crucial document in Nigerian commercial transactions, providing a legal framework for businesses to acquire necessary equipment through external financing. This agreement type is particularly important in the Nigerian context where capital equipment acquisition often requires structured financing solutions. The document combines elements of secured lending, asset financing, and equipment operational requirements, all while ensuring compliance with Nigerian financial regulations and security registration requirements. It is typically used when businesses need to finance substantial equipment purchases but prefer to spread the cost over time while providing security over the equipment to the finance provider. The agreement must comply with various Nigerian laws including the Equipment Leasing Act 2015, Secured Transactions in Movable Assets Act 2017, and relevant Central Bank of Nigeria regulations.
Suggested Sections

1. Parties: Identification of the finance provider and the borrower/customer, including their complete legal names, registration details, and addresses

2. Background: Context of the agreement, including the purpose of the financing and brief description of the equipment being financed

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial, technical, and legal terms

4. Facility Terms: Details of the financing facility, including amount, purpose, and drawdown conditions

5. Payment Terms: Structure and schedule of payments, including interest calculations, fees, and payment methods

6. Security Arrangements: Details of security interest over the equipment and any additional security required

7. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective or funds are released

8. Representations and Warranties: Statements of fact and assurances given by the borrower regarding their legal and financial status

9. Covenants: Ongoing obligations of the borrower, including financial covenants and equipment maintenance requirements

10. Insurance Requirements: Mandatory insurance coverage for the equipment and related obligations

11. Events of Default: Circumstances constituting default and their consequences

12. Remedies: Rights and remedies available to the finance provider in case of default

13. Termination: Circumstances and procedures for early termination of the agreement

14. General Provisions: Standard legal provisions including notices, amendments, governing law, and dispute resolution

Optional Sections

1. Import Requirements: Required when equipment is being imported, covering import licenses, duties, and compliance with import regulations

2. Maintenance and Service: Detailed maintenance obligations when specific maintenance requirements are part of the financing arrangement

3. Equipment Operation: Specific requirements for equipment operation when specialized training or certifications are required

4. Environmental Compliance: Required for equipment that may have environmental impacts or requires specific environmental permits

5. Technology Transfer: Necessary when the equipment involves technology transfer requiring NOTAP approval

6. Step-In Rights: Required when finance provider needs right to take control of equipment operation in specific circumstances

7. Third Party Rights: Required when there are manufacturer warranties or third-party maintenance contracts

8. Local Content Requirements: Required when equipment financing must comply with Nigerian local content laws

Suggested Schedules

1. Equipment Schedule: Detailed description of the equipment being financed, including specifications and serial numbers

2. Payment Schedule: Detailed breakdown of payment amounts, dates, and interest calculations

3. Condition Report: Initial condition report of the equipment at time of financing

4. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

5. Security Documents: Forms of security documents and guarantees required

6. Financial Covenants: Detailed financial ratios and reporting requirements

7. Permitted Locations: Approved locations for equipment operation and storage

8. Form of Drawdown Notice: Template for requesting disbursement of funds

9. Required Authorizations: List of required permits, licenses, and authorizations

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

Manufacturing

Construction

Agriculture

Mining

Oil and Gas

Transportation

Healthcare

Telecommunications

Industrial Processing

Energy

Infrastructure

Logistics

Maritime

Relevant Teams

Legal

Finance

Treasury

Risk Management

Operations

Procurement

Compliance

Credit

Commercial

Asset Management

Technical Operations

Business Development

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Equipment Finance Manager

Legal Counsel

Commercial Director

Risk Manager

Credit Manager

Operations Director

Procurement Manager

Asset Finance Specialist

Compliance Officer

Financial Controller

Business Development Manager

Equipment 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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