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The Asset Based Loan Agreement is a crucial financing instrument in Singapore's commercial lending landscape. It enables businesses to obtain funding by leveraging their tangible assets as security. This document is particularly relevant when companies need working capital but prefer not to or cannot provide traditional real estate security. The agreement must comply with Singapore's robust regulatory framework, including MAS guidelines and the Banking Act. It typically includes detailed provisions for asset valuation, monitoring, and enforcement rights, reflecting Singapore's sophisticated approach to secured lending.

1. Parties: Identification of lender and borrower, including registration details and addresses

2. Background: Context of the loan, purpose, and general structure of the security arrangement

3. Definitions and Interpretation: Key terms used in the agreement, including asset definitions, financial terms, and interpretation rules

4. The Facility: Details of the loan amount, purpose, and availability

5. Security: Description of assets being used as security, creation of security interest

6. Conditions Precedent: Prerequisites that must be satisfied before loan drawdown

7. Drawdown: Procedures and conditions for accessing the loan

8. Interest and Fees: Interest rates, calculation methods, and applicable fees

9. Repayment: Repayment terms, schedule, and prepayment provisions

10. Representations and Warranties: Statements of fact and assurances from the borrower

11. Covenants: Ongoing obligations of the borrower

12. Events of Default: Circumstances constituting default and consequences