51��Ƶ����

The Intercompany Loan Agreement is essential for South African companies seeking to implement intra-group financing arrangements. It is used when one company within a corporate group provides financial assistance to another related company, whether for operational funding, project financing, or strategic investments. The document must comply with South African Companies Act requirements, particularly Section 45, which mandates specific corporate approvals and solvency/liquidity tests. The agreement includes detailed terms for the loan amount, interest calculations, repayment schedules, security arrangements (if any), and provisions for regulatory compliance. It's particularly important in the South African context due to strict corporate governance requirements, exchange control regulations for cross-border transactions, and specific tax implications for intercompany financing.

1. Parties: Identification of the Lender and Borrower companies, including registration numbers and registered addresses

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Loan: Details of the loan amount, purpose, and drawdown conditions

5. Interest: Interest rate, calculation method, and payment terms

6. Repayment: Terms and conditions for repayment of the loan, including schedule and method

7. Security: Details of any security or guarantees provided for the loan

8. Representations and Warranties: Standard company representations and compliance with Companies Act requirements

9. Undertakings: Ongoing obligations of the borrower during the loan term

10. Events of Default: Circumstances constituting default and consequences

11. Tax Provisions: Treatment of taxes, including withholding tax obligations

12. General Provisions: Standard legal provisions including notices, amendments, and governing law