Document background
The Security Loan Agreement is a fundamental document used in Pakistani banking and finance transactions where a lender provides financing against security over the borrower's assets. This document is essential when financial institutions or banks extend credit facilities requiring collateral or security interests in various forms of assets. The agreement combines standard loan provisions with specific security creation mechanisms, complying with Pakistani security and banking laws, including the Financial Institutions (Recovery of Finances) Ordinance 2001 and relevant State Bank of Pakistan regulations. It details the security package, enforcement rights, and remedies available to the lender while incorporating necessary protections required under Pakistani law. The Security Loan Agreement is particularly important in corporate financing, project finance, and asset-based lending scenarios where the lender requires robust security arrangements to protect their interests.
