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Loan Note Agreement for Singapore

Loan Note Agreement Template for Singapore

A Loan Note Agreement under Singapore law is a legally binding document that evidences a debt obligation between a lender and borrower. It details the terms of the loan, including principal amount, interest rate, repayment schedule, and any security arrangements. The agreement is governed by Singapore's robust financial regulatory framework, including the Contracts Act, Moneylenders Act, and Securities and Futures Act, providing clear enforcement mechanisms and creditor protections within Singapore's established financial center.

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What is a Loan Note Agreement?

A Loan Note Agreement is commonly used in Singapore's financial markets when one party wishes to extend credit to another under documented terms. This instrument combines elements of both a promissory note and a loan agreement, providing detailed terms while maintaining transferability. Under Singapore law, these agreements must comply with local regulatory requirements, particularly regarding interest rates, security registration, and disclosure obligations. The document typically includes comprehensive provisions on drawdown conditions, repayment terms, events of default, and enforcement mechanisms, making it suitable for both institutional and private lending arrangements.

What sections should be included in a Loan Note Agreement?

1. Parties: Details of the lender and borrower, including full legal names, registration numbers, and registered addresses

2. Background: Context of the loan transaction and relationship between parties

3. Definitions: Key terms used throughout the agreement including financial terms, parties, and technical definitions

4. Loan Amount and Purpose: Specification of principal amount, currency, and intended use of funds

5. Interest Rate and Calculations: Interest rate, calculation methodology, payment frequency, and default interest provisions

6. Repayment Terms: Schedule and method of repayment, including prepayment terms and conditions

7. Events of Default: Comprehensive list of default events and their consequences

8. Representations and Warranties: Statements of fact and assurances by parties regarding their capacity and authority

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

1. Security: Details of any collateral, guarantees, or other security arrangements when loan is secured

2. Conversion Rights: Terms and conditions for converting debt to equity, applicable for convertible loan notes

3. Subordination: Priority ranking of the loan and relationship with other creditors when multiple creditors are involved

4. Transfer Provisions: Rules and procedures for transferring the loan note if the note is transferable

What schedules should be included in a Loan Note Agreement?

1. Repayment Schedule: Detailed schedule of payment dates, amounts, and breakdown between principal and interest

2. Form of Transfer Certificate: Standard template for documenting transfers of the note between parties

3. Security Documents: Detailed documentation of security arrangements, including asset descriptions and enforcement mechanisms

4. Conditions Precedent: Comprehensive list of conditions that must be satisfied before loan drawdown

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

Singapore

Publisher

Genie AI

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions





































Clauses

































Industries

Contracts Act 1872: Primary legislation governing basic principles of contract formation and enforcement, including offer, acceptance, consideration, and contractual capacity

Moneylenders Act: Regulates moneylending business, requires licensing for moneylenders, and sets interest rate caps and other lending restrictions

Securities and Futures Act (SFA): Regulates securities offerings and trading, including requirements for debentures and disclosure obligations

Companies Act: Governs corporate entities, including requirements for corporate borrowing and security creation

Banking Act: Sets regulatory requirements for bank lending and financial institutions

Bankruptcy Act: Contains provisions relating to default and insolvency, including creditor rights and remedies

MAS Guidelines: Regulatory requirements from Monetary Authority of Singapore covering financial instruments, anti-money laundering, and Know Your Customer obligations

Personal Data Protection Act: Governs the collection, use, and disclosure of personal data of parties involved in the agreement

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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