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The Loan Broker Commission Agreement is essential for financial institutions in Nigeria seeking to expand their lending business through third-party brokers. This document is typically used when a lender wishes to formalize a relationship with independent brokers or brokerage firms who will source potential borrowers for various loan products. The agreement must comply with Nigerian financial regulations, including the Banks and Other Financial Institutions Act (BOFIA) 2020 and relevant Central Bank of Nigeria directives. It covers crucial aspects such as commission structures, regulatory compliance requirements, service standards, and risk management procedures. The document is particularly important in the Nigerian context where loan brokerage plays a significant role in extending financial services to various market segments.

1. Parties: Identification of the Lender and the Broker, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the Broker's business, Lender's operations, and intention to establish a commission-based relationship

3. Definitions: Key terms used throughout the agreement, including 'Successful Loan', 'Commission', 'Borrower', 'Loan Products', etc.

4. Appointment and Scope: Formal appointment of the Broker and detailed scope of authorized services

5. Broker's Obligations: Detailed responsibilities including client sourcing, documentation, compliance with regulations, and service standards

6. Lender's Obligations: Responsibilities including providing product information, processing applications, and commission payments

7. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

8. Payment Terms: Timing of payments, payment methods, and handling of disputes

9. Compliance Requirements: Regulatory compliance obligations, including AML requirements and consumer protection

10. Representations and Warranties: Key assurances from both parties, including licensing, authority, and capacity

11. Term and Termination: Duration of agreement and circumstances for termination

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction for dispute resolution