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Vendor Loan Agreement
"I need a Vendor Loan Agreement for a $2.5M commercial property purchase in Auckland, where I'm providing vendor financing with a 5-year term and the property itself as security, with settlement scheduled for March 2025."
1. Parties: Identifies and details the Vendor (Lender) and Purchaser (Borrower) with full legal names and addresses
2. Background: Outlines the context of the loan agreement, including reference to the related sale transaction
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Loan Amount and Purpose: Specifies the loan amount, purpose, and any conditions precedent to advancing the loan
5. Interest: Details the interest rate, calculation method, and payment frequency
6. Repayment Terms: Specifies repayment schedule, payment methods, and term of the loan
7. Security: Details any security provided for the loan, including charges over property or other assets
8. Borrower's Covenants: Lists the borrower's obligations and promises under the agreement
9. Events of Default: Defines circumstances constituting default and consequences
10. Lender's Rights and Remedies: Outlines the lender's rights, particularly in event of default
11. Costs and Expenses: Allocates responsibility for legal costs, registration fees, and enforcement expenses
12. General Provisions: Includes standard clauses like notices, amendments, governing law, and assignment
13. Execution: Signature blocks and execution requirements
1. Guarantees: Required when a third party guarantees the loan obligations
2. Early Repayment: Include when early repayment is permitted, specifying any penalties or conditions
3. Insurance Requirements: Needed when specific insurance coverage is required for secured assets
4. Special Conditions: For any unique terms specific to the particular transaction
5. Vendor's Warranties: Include when the vendor makes specific representations about the loan or related sale
6. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard court jurisdiction
7. Privacy and Information Sharing: Detailed privacy provisions when extensive personal information handling is involved
1. Schedule 1 - Loan Details: Key financial terms including loan amount, interest rate, payment dates, and term
2. Schedule 2 - Repayment Schedule: Detailed amortization schedule showing payment amounts and dates
3. Schedule 3 - Security Details: Description of security properties or assets, including registration details
4. Schedule 4 - Conditions Precedent: List of conditions to be satisfied before loan advancement
5. Schedule 5 - Disclosure Statement: Mandatory disclosure information required under CCCFA
6. Appendix A - Direct Debit Authority: Form for setting up automatic payments if applicable
7. Appendix B - Guarantee Form: Standard form of guarantee when applicable
Authors
Real Estate
Property Development
Commercial Property
Retail
Manufacturing
Agriculture
Professional Services
Construction
Small Business
Industrial
Legal
Finance
Commercial
Credit
Risk
Compliance
Property
Corporate Advisory
Business Development
Investment
Chief Financial Officer
Finance Manager
Commercial Lawyer
Property Lawyer
Credit Manager
Business Development Manager
Real Estate Agent
Commercial Director
Risk Manager
Compliance Officer
Corporate Counsel
Financial Controller
Business Owner
Property Developer
Investment Manager
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