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Equity Loan Agreement
"I need an Equity Loan Agreement for a £500,000 loan against a commercial property in Manchester, where the lender will receive 25% of any appreciation in the property value, with the loan to be drawn down by March 2025."
1. Parties: Identification and details of the lender and borrower
2. Background: Context of the loan agreement and purpose of the arrangement
3. Definitions: Key terms and their meanings used throughout the agreement
4. Loan Amount and Purpose: Specifics of the loan amount, its intended use, and any conditions attached
5. Interest and Charges: Details of interest calculation method, rates, and any additional charges or fees
6. Repayment Terms: Schedule and methods of repayment, including payment dates and amounts
7. Security: Details of property or assets securing the loan and related obligations
8. Representations and Warranties: Statements of fact and assurances given by the borrower
9. Covenants: Ongoing obligations of the borrower throughout the loan term
10. Events of Default: Circumstances that constitute default and consequences thereof
11. Boilerplate Provisions: Standard legal provisions including notices, governing law, and jurisdiction
1. Early Repayment: Terms and conditions for early loan settlement, including any penalties or fees
2. Assignment: Rights and restrictions regarding the transfer or assignment of the agreement
3. Insurance Requirements: Specific insurance coverage requirements for the borrower
4. Further Advances: Provisions for additional borrowing under the same security
5. Change of Control: Provisions dealing with changes in ownership or control of the borrower
1. Schedule 1 - Property Details: Detailed description of the property securing the loan
2. Schedule 2 - Repayment Schedule: Detailed payment schedule including dates, amounts, and interest calculations
3. Schedule 3 - Conditions Precedent: List of conditions that must be satisfied before loan drawdown
4. Schedule 4 - Form of Drawdown Notice: Template for requesting loan disbursements
5. Appendix A - Form of Notices: Standard form notices for various communications under the agreement
Authors
Applicable Law
Approved Valuer
Available Facility
Base Rate
Business Day
Completion Date
Default
Default Interest Rate
Disposal
Drawdown Date
Drawdown Notice
Encumbrance
Equity Loan
Event of Default
Facility
Final Repayment Date
Financial Indebtedness
Initial Market Value
Interest Payment Date
Interest Period
Interest Rate
Legal Charge
Lender's Percentage
Loan Amount
Market Value
Material Adverse Effect
Permitted Disposal
Property
Property Value
Redemption Amount
Reference Banks
Relevant Document
Repayment Date
Security
Security Documents
Share of Appreciation
Tax
Term
Transaction Documents
Valuation
Valuation Date
VAT
Purpose
Drawdown
Interest
Repayment
Security
Property Valuation
Share of Appreciation
Representations and Warranties
Covenants
Events of Default
Early Repayment
Property Maintenance
Insurance
Assignment and Transfer
Costs and Expenses
Notices
Confidentiality
Data Protection
Force Majeure
Amendments and Waivers
Severability
Entire Agreement
Governing Law
Jurisdiction
Counterparts
Third Party Rights
Further Assurance
Indemnities
Taxes
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