Loan Licence Agreement Template for England and Wales

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Key Requirements PROMPT example:

Loan Licence Agreement

"I need a Loan Licence Agreement for a £500,000 loan to a technology company, where we're also licensing our proprietary software platform to them for 3 years starting from January 2025, with quarterly repayments and annual licence fee reviews."

Document background
The Loan Licence Agreement is specifically designed for situations where financial support needs to be combined with licensing arrangements under English and Welsh law. This document type is commonly used when a lender provides funding while simultaneously granting rights to use specific assets, intellectual property, or technology. The agreement covers crucial elements including loan terms, interest rates, repayment schedules, security arrangements (if any), and the scope of licensed rights. It ensures compliance with UK financial regulations while protecting both parties' interests in the loan and licensing aspects.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Loan Terms: Principal amount, interest rate, repayment terms

5. Licence Grant: Scope and nature of the licence being granted

6. Payment Terms: Payment schedule and methods

7. Term and Termination: Duration and circumstances for termination

8. Representations and Warranties: Statements of fact and promises made by each party

9. Governing Law and Jurisdiction: Laws governing the agreement and courts having jurisdiction

Optional Sections

1. Security Provisions: Details of any security or collateral required for the loan

2. Intellectual Property Rights: IP ownership and usage rights when licensed material includes intellectual property

3. Data Protection: Provisions for handling personal data and ensuring compliance with data protection laws

4. Force Majeure: Provisions dealing with circumstances beyond parties' control

5. Assignment and Sublicensing: Rights and restrictions regarding transfer of rights under the agreement

Suggested Schedules

1. Schedule 1 - Licensed Material: Detailed description of what is being licensed

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment terms and dates

3. Schedule 3 - Security Details: Description of any security arrangements and collateral

4. Appendix A - Technical Specifications: Technical details and specifications of licensed material

5. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements applicable to 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

Industries

Consumer Credit Act 1974: Primary legislation governing consumer credit arrangements and licensing requirements for credit-related activities

Financial Services and Markets Act 2000: Key legislation regulating financial services and markets in the UK, including licensing and operational requirements

Unfair Contract Terms Act 1977: Legislation controlling unfair terms in contracts, particularly exclusion and limitation clauses

Consumer Rights Act 2015: Main consumer protection legislation that consolidates and clarifies consumer rights in relation to contracts for goods and services

Financial Services Act 2021: Recent legislation amending the UK's financial services regulatory framework post-Brexit

FCA Regulations: Financial Conduct Authority regulations and guidance for financial services firms and activities

PRA Requirements: Prudential Regulation Authority requirements focusing on financial stability and prudential regulation

Money Laundering Regulations 2017: Regulations implementing anti-money laundering and counter-terrorist financing measures

Copyright, Designs and Patents Act 1988: Primary legislation governing intellectual property rights in the UK, particularly relevant if the licence involves IP

Trade Marks Act 1994: Legislation governing the registration and protection of trademarks in the UK

Law of Property Act 1925: Fundamental property law legislation, relevant if the loan agreement involves security interests

Misrepresentation Act 1967: Legislation governing false statements made during contract formation

UK GDPR: Post-Brexit data protection regulation implementing European-style data protection requirements in the UK

Data Protection Act 2018: UK's primary data protection legislation, working alongside UK GDPR

Insolvency Act 1986: Legislation governing insolvency proceedings and relevant provisions for loan agreements

Enterprise Act 2002: Legislation affecting business regulation and enterprise law, including amendments to insolvency provisions

Financial Collateral Arrangements (No.2) Regulations 2003: Regulations governing financial collateral arrangements and security interests

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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