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Loan Out Agreement for New Zealand

Loan Out Agreement Template for New Zealand

This document is a comprehensive Loan Out Agreement governed by New Zealand law, establishing the terms and conditions under which a loan-out company provides the services of a specific individual to an engaging company. The agreement addresses key aspects including service scope, compensation, tax obligations, intellectual property rights, and compliance with New Zealand employment and corporate regulations. It includes specific provisions to ensure alignment with New Zealand tax law requirements and corporate governance standards while protecting the interests of all parties involved.

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What is a Loan Out Agreement?

This Loan Out Agreement is designed for use in New Zealand business contexts where an individual provides services through their own company (loan-out company) to another business entity. The document is particularly relevant when structuring service arrangements that require clear delineation between employment and independent contractor relationships, compliance with tax obligations, and protection of intellectual property rights. It incorporates provisions specific to New Zealand corporate and tax law, including GST considerations and income tax requirements. The agreement is commonly used in professional services, entertainment, and consulting sectors, where individuals operate through corporate entities for tax efficiency and limited liability protection. It includes comprehensive terms covering service delivery, payment terms, obligations of all parties, and appropriate protections for confidential information and intellectual property.

What sections should be included in a Loan Out Agreement?

1. Parties: Identifies the loan-out company, the engaging company, and references the individual whose services are being provided

2. Background: Sets out the context of the agreement, including that the loan-out company employs/contracts with the individual and has the right to loan out their services

3. Definitions: Defines key terms used throughout the agreement, including 'Services', 'Term', 'Fee', and 'Individual'

4. Services: Detailed description of the services to be provided by the individual through the loan-out company

5. Term: Duration of the agreement, including start date, end date, and any renewal provisions

6. Fees and Payment: Compensation structure, payment terms, expenses, and tax considerations

7. Obligations of the Loan-Out Company: Responsibilities including ensuring availability of the individual, maintaining insurances, and compliance with laws

8. Obligations of the Engaging Company: Responsibilities including payment, workplace safety, and support for service delivery

9. Representations and Warranties: Key assurances from both parties, including authority to contract and individual's qualifications

10. Intellectual Property: Ownership and assignment of IP created during the service provision

11. Confidentiality: Protection of confidential information of all parties

12. Termination: Circumstances under which the agreement can be terminated and the consequences

13. General Provisions: Standard clauses including notices, amendment process, governing law, and dispute resolution

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

1. Exclusivity: Used when the individual is required to provide services exclusively to the engaging company during the term

2. Performance Targets: Include when specific deliverables or KPIs are required

3. Insurance: Detailed insurance requirements beyond standard provisions, used for high-risk or specialized services

4. Moral Rights: Required for creative industry agreements where moral rights in creative works need to be addressed

5. Alternative Individual: Used when the loan-out company may provide an alternative individual under certain circumstances

6. Equipment and Resources: Include when specific equipment or resources must be provided by either party

7. Health and Safety: Detailed health and safety provisions for high-risk industries or specific workplace requirements

8. Force Majeure: Include for longer-term agreements or where service interruption risks need to be addressed

What schedules should be included in a Loan Out Agreement?

1. Schedule 1 - Services Description: Detailed scope of services and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment structure, and any performance-based compensation

3. Schedule 3 - Individual's Qualifications: List of required qualifications, certifications, and experience of the individual

4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage levels required

5. Schedule 5 - Key Personnel: Details of the individual and any approved substitutes

6. Appendix A - Service Levels: Performance standards and measurement criteria if applicable

7. Appendix B - Workplace Policies: Relevant policies of the engaging company that must be complied with

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

New Zealand

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions





























Clauses



































Relevant Industries

Entertainment and Media

Professional Services

Consulting

Information Technology

Creative Arts

Film and Television

Sports and Athletics

Healthcare

Engineering

Education and Training

Relevant Teams

Legal

Human Resources

Finance

Procurement

Operations

Project Management Office

Talent Acquisition

Contract Administration

Risk Management

Compliance

Relevant Roles

Actor

Director

Consultant

IT Specialist

Professional Athlete

Medical Specialist

Executive

Creative Director

Engineer

Producer

Project Manager

Technical Advisor

Professional Speaker

Training Specialist

Performance Artist

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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