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Commercial Loan Agreement for Ireland

Commercial Loan Agreement Template for Ireland

A comprehensive legal agreement governed by Irish law that establishes the terms and conditions under which a financial institution provides a commercial loan to a corporate borrower. The document details the loan facility, including amount, purpose, interest rates, repayment terms, security arrangements (if any), representations and warranties, covenants, and events of default. It ensures compliance with Irish banking regulations, including Central Bank requirements, and incorporates necessary provisions for enforceability under Irish contract law. The agreement also addresses risk allocation between parties and includes mechanisms for monitoring and protecting the lender's interests throughout the loan term.

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Commercial Loan Agreement

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What is a Commercial Loan Agreement?

The Commercial Loan Agreement serves as the primary documentation for business financing transactions in Ireland, establishing the legal relationship between financial institutions and corporate borrowers. It is used when businesses require substantial funding for various purposes such as working capital, expansion, asset acquisition, or project financing. The agreement must comply with Irish banking regulations, including Central Bank of Ireland requirements, Companies Act 2014 provisions, and relevant financial services legislation. It typically includes detailed terms on loan mechanics, security arrangements, borrower obligations, and lender protections, with specific provisions adapted to the transaction's complexity and size. This document type is essential for both secured and unsecured commercial lending, requiring careful consideration of Irish security registration requirements and enforcement mechanisms.

What sections should be included in a Commercial Loan Agreement?

1. Parties: Identifies the lender and borrower with full legal names and registered addresses

2. Background: Sets out the context of the loan and summarizes the parties' intentions

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement

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

5. Conditions Precedent: Lists the conditions that must be satisfied before the loan can be drawn

6. Drawdown: Specifies the drawdown procedure and requirements

7. Interest: Sets out interest rate, calculation methods, and payment dates

8. Repayment: Details repayment schedule, amounts, and mechanisms

9. Prepayment: Specifies terms for voluntary and mandatory prepayment

10. Representations and Warranties: Lists the borrower's confirmations about its status and capacity

11. Covenants: Sets out positive and negative obligations of the borrower

12. Events of Default: Defines circumstances that allow the lender to call in the loan

13. Changes to Parties: Addresses assignment and transfer rights

14. Payments: Details payment mechanics and calculations

15. Notices: Specifies how formal communications should be made

16. Governing Law and Jurisdiction: Confirms Irish law governance and jurisdiction

What sections are optional to include in a Commercial Loan Agreement?

1. Security: Include when the loan is secured by specific assets or guarantees

2. Guarantees: Include when there are third-party guarantors

3. Multiple Lenders: Include for syndicated facilities with multiple lenders

4. Tax Gross Up and Indemnities: Include for cross-border lending or specific tax arrangements

5. Increased Costs: Include when regulatory changes might affect the lender's costs

6. Set-off Rights: Include when the lender has rights to set off against other accounts

7. Currency Provisions: Include for multi-currency facilities

8. Anti-Money Laundering Provisions: Include detailed AML requirements if not covered in conditions precedent

9. Break Costs: Include for fixed-rate facilities or where early repayment might trigger costs

What schedules should be included in a Commercial Loan Agreement?

1. Schedule 1 - Conditions Precedent: Detailed list of required documents and conditions

2. Schedule 2 - Drawdown Request Form: Template form for requesting loan disbursements

3. Schedule 3 - Repayment Schedule: Detailed amortization schedule if term loan

4. Schedule 4 - Security Documents: List and copies of security documents if secured facility

5. Schedule 5 - Financial Covenants: Detailed financial covenants and calculation methods

6. Schedule 6 - Authorized Signatories: List of persons authorized to act for borrower

7. Schedule 7 - Existing Security: Details of existing security over borrower's assets

8. Schedule 8 - Form of Compliance Certificate: Template for periodic compliance reporting

9. Appendix A - Contact Details: Detailed contact information for all parties

10. Appendix B - Fee Schedule: Detailed breakdown of all applicable fees

Authors

Alex Denne

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

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions




































































Clauses


































Relevant Industries

Banking & Financial Services

Real Estate & Construction

Manufacturing & Industrial

Technology & Communications

Retail & Consumer Goods

Healthcare & Pharmaceuticals

Energy & Utilities

Transportation & Logistics

Agriculture & Food

Professional Services

Relevant Teams

Legal

Finance

Treasury

Credit Risk

Compliance

Corporate Banking

Commercial Lending

Portfolio Management

Credit Administration

Deal Advisory

Transaction Management

Loan Operations

Risk Management

Relevant Roles

Chief Financial Officer

Finance Director

Treasury Manager

Commercial Lending Officer

Credit Risk Manager

Legal Counsel

Compliance Officer

Relationship Manager

Corporate Banking Manager

Financial Controller

Company Secretary

Senior Loan Officer

Credit Analyst

Portfolio Manager

Restructuring Manager

Industries










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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