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Accession Deed Facility Agreement for Singapore

Accession Deed Facility Agreement Template for Singapore

An Accession Deed Facility Agreement under Singapore law is a formal legal document that enables a new party to join an existing facility agreement as an additional borrower, guarantor, or security provider. The document is governed by Singapore's robust financial services legal framework, including the Banking Act and Securities and Futures Act, providing clarity and certainty in financial transactions. It contains detailed provisions regarding the terms of accession, representations and warranties, and compliance with existing facility terms.

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What is a Accession Deed Facility Agreement?

The Accession Deed Facility Agreement is utilized when a new entity needs to become a party to an existing facility agreement, typically in scenarios of corporate restructuring, expansion, or refinancing. Under Singapore law, this document must comply with strict banking regulations and corporate requirements. The deed outlines the acceding party's rights and obligations, confirms their acceptance of the existing facility terms, and includes necessary representations and warranties. It's particularly important in Singapore's financial hub context, where multi-party facility arrangements are common in corporate and project financing.

What sections should be included in a Accession Deed Facility Agreement?

1. Parties: Identification of all parties to the agreement including existing lenders, borrower, and acceding party

2. Background: Context of the original facility agreement and reason for accession

3. Definitions: Key terms used in the deed, including references to defined terms in the original facility agreement

4. Accession: Core provisions regarding the accession to the facility agreement

5. Representations and Warranties: Confirmations by the acceding party regarding their status and capacity

6. Effective Date: Specification of when the accession becomes effective

What sections are optional to include in a Accession Deed Facility Agreement?

1. Security Provisions: Required if the acceding party is providing additional security - used when new security is being provided

2. Conditions Precedent: Specific conditions that must be met before accession becomes effective - used when there are specific requirements to be met before accession

3. Guarantee Provisions: Required if the acceding party is joining as a guarantor - used when party is acceding as a guarantor

What schedules should be included in a Accession Deed Facility Agreement?

1. Form of Accession Notice: Template notice to be given regarding the accession

2. Original Facility Agreement: Copy of the facility agreement being acceded to

3. Corporate Authorizations: Relevant board resolutions and corporate approvals

4. Security Documents: If applicable, documents relating to any new security being provided

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use

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