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Funding Agreement Template for Singapore

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Key Requirements PROMPT example:

Funding Agreement

"Need a Funding Agreement for a Series A investment of SGD 5 million into our Singapore-based technology startup, to be completed by March 2025, with quarterly disbursements and standard investor protection clauses."

Document background
The Funding Agreement serves as the primary documentation for financial arrangements between investors and fund recipients in Singapore. It is commonly used for various funding structures including venture capital investments, business loans, and project financing. The agreement must comply with Singapore's regulatory framework, including MAS guidelines and corporate law requirements. Essential elements typically include funding terms, conditions precedent, representations and warranties, covenants, and events of default. This document is crucial for protecting both the funder's and recipient's interests while ensuring regulatory compliance.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the funding arrangement

3. Definitions: Key terms used throughout the agreement

4. Funding Amount and Terms: Specifics of funding amount, disbursement schedule, and conditions

5. Use of Funds: Permitted uses and restrictions on funding

6. Representations and Warranties: Statements of fact and assurances by parties

7. Covenants: Ongoing obligations of the parties

8. Events of Default: Circumstances constituting breach and consequences

9. Term and Termination: Duration and circumstances for ending agreement

Optional Sections

1. Security Arrangements: Details of any security or collateral - use when funding is secured against assets

2. Conversion Rights: Terms for converting funding to equity - use for convertible funding instruments

3. Board Rights: Investor representation on board - use when investor requires board participation

4. Information Rights: Reporting and information access rights - use for significant funding amounts

Suggested Schedules

1. Schedule of Disbursements: Detailed payment schedule and milestones

2. Business Plan: Recipient's business plan and projections

3. Security Documents: Details of any security arrangements

4. KYC Documentation: Required compliance documentation

5. Reporting Templates: Required format for periodic reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses






























Industries

Contracts Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore (Chapter 53)

Companies Act: Regulates company operations, corporate governance, and business structures in Singapore (Chapter 50)

Securities and Futures Act: Regulates securities, futures, and financial markets activities (Chapter 289); relevant if funding involves securities

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore governing financial activities and transactions

Securities and Futures Regulations: Specific regulations regarding licensing and conduct of business, particularly relevant for venture capital activities

Financial Advisers Act: Governs the provision of financial advisory services in Singapore

CDSA: Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act - covers anti-money laundering provisions

AML/CFT Requirements: Anti-Money Laundering and Countering the Financing of Terrorism requirements for financial transactions

PDPA 2012: Personal Data Protection Act governing the collection, use, and disclosure of personal data

Exchange Control Regulations: Regulations governing foreign exchange transactions and international fund transfers

Foreign Investment Regulations: Rules and restrictions governing foreign investments in Singapore

Income Tax Act: Primary legislation governing taxation of income in Singapore

Stamp Duties Act: Governs the imposition of stamp duties on documents and transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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