Document background
The Co-Borrower Loan Agreement is a crucial document in New Zealand's lending landscape, designed for situations where multiple parties wish to jointly obtain a loan from a financial institution. This agreement type is commonly used for property purchases, business funding, or personal loans where borrowers want to combine their financial capacity. The document must comply with New Zealand's Credit Contracts and Consumer Finance Act 2003 and related regulations, incorporating mandatory disclosure requirements and responsible lending obligations. It establishes joint and several liability among co-borrowers, meaning each borrower is independently responsible for the entire loan amount while also sharing collective responsibility. The agreement includes essential details about loan terms, repayment schedules, interest rates, default provisions, and any security arrangements.
