Financial Support Agreement Template for England and Wales

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Key Requirements PROMPT example:

Financial Support Agreement

"I need a Financial Support Agreement for our parent company to provide a £5 million working capital facility to our UK subsidiary, with quarterly drawdown options and security over the subsidiary's property assets, to be effective from March 2025."

Document background
Financial Support Agreements are essential documents used when one party commits to providing financial assistance to another, whether in a corporate group structure, investment scenario, or other business arrangement. This contract type is particularly relevant in England and Wales, where it must comply with strict financial services regulations and banking laws. The Financial Support Agreement typically includes detailed terms about support mechanisms, payment schedules, security arrangements, and termination provisions, while ensuring adherence to UK regulatory requirements and financial services legislation.
Suggested Sections

1. 1. Parties: Identification and details of the parties entering into the agreement

2. 2. Background: Context and purpose of the financial support arrangement

3. 3. Definitions: Key terms used throughout the agreement

4. 4. Financial Support Obligations: Core terms of financial support including amounts, timing, and conditions

5. 5. Payment Terms: Details of how and when payments should be made

6. 6. Duration and Termination: Term of agreement and circumstances for termination

7. 7. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

1. Security Arrangements: Details of any security or collateral - used when the support is secured against assets

2. Conditions Precedent: Conditions that must be met before support is provided - used for complex arrangements with pre-conditions

3. Representations and Warranties: Statements of fact by the parties - used for larger or more formal arrangements

Suggested Schedules

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts and dates

2. Schedule 2 - Security Details: Details of any security or collateral arrangements

3. Schedule 3 - Conditions Precedent: List of conditions that must be satisfied

4. Appendix A - Form of Drawdown Notice: Template for requesting funds under the agreement

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

Relevant legal definitions
Industries

Financial Services and Markets Act 2000 (FSMA): Primary legislation regulating financial services in the UK, establishing regulatory framework and authorities

Financial Services Act 2012: Reformed and updated the UK financial regulatory framework, establishing the FCA and PRA

Consumer Credit Act 1974: Regulates credit agreements with consumers and provides consumer protection measures

Contract Law Reform (Transfers of Title) Act 1994: Governs the transfer of property rights and title in contractual arrangements

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts

Consumer Rights Act 2015: Consolidates consumer protection law and provides rights for consumers in contracts

UK Money Laundering Regulations 2017: Sets out anti-money laundering requirements and due diligence procedures for financial transactions

Banking Act 2009: Provides framework for bank regulation and special resolution regime for failing banks

Payment Services Regulations 2017: Regulates payment services and payment service providers in the UK

Financial Collateral Arrangements (No.2) Regulations 2003: Governs arrangements involving financial collateral between financial institutions

Companies Act 2006: Principal legislation governing company formation and operation in the UK

Partnership Act 1890: Defines and regulates partnerships in business relationships

Insolvency Act 1986: Governs corporate and personal insolvency procedures

Corporate Insolvency and Governance Act 2020: Updates insolvency law and introduces new restructuring tools

UK GDPR: Post-Brexit data protection regulation implementing GDPR principles in UK law

Data Protection Act 2018: Implements and supplements UK GDPR, providing framework for data protection

Private International Law (Miscellaneous Provisions) Act 1995: Governs choice of law rules in cross-border contractual relationships

Rome I Regulation (as retained in UK law): Determines applicable law in contractual obligations with international elements

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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