Loan Release Form Template for England and Wales

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Key Requirements PROMPT example:

Loan Release Form

"I need a Loan Release Form to formally discharge a commercial loan of £500,000 that was fully repaid on 15 March 2025, including the release of associated property security and two personal guarantors."

Document background
A Loan Release Form is essential when terminating loan agreements in England and Wales, typically used after full repayment or agreed settlement of a loan. This document provides legal certainty by formally documenting the discharge of obligations and preventing future claims relating to the loan. The form should clearly identify the original loan agreement, confirm the release terms, and address any security or guarantees. It must comply with English contract law principles and relevant financial regulations, particularly when dealing with regulated loans or consumer credit agreements.
Suggested Sections

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

2. Loan Reference: Original loan agreement details including date, reference numbers, and initial loan amount

3. Release Statement: Clear and unambiguous statement confirming the release of obligations under the loan agreement

4. Settlement Amount: Confirmation of any final payment made or required to effect the release

5. Effective Date: Specification of when the release takes effect and any conditions precedent

Optional Sections

1. Security Release: Provisions for the release of any security held against the loan, including property charges or other assets

2. Guarantor Release: Specific provisions releasing any guarantors from their obligations under the original loan agreement

3. Partial Release: Details of terms where only part of the loan or specific obligations are being released

4. Regulatory Compliance: Additional provisions required for compliance with FCA regulations or consumer credit legislation

Suggested Schedules

1. Schedule 1 - Original Loan Details: Copy or detailed summary of the original loan agreement terms and conditions

2. Schedule 2 - Payment History: Record of payments made and final settlement details for audit purposes

3. Schedule 3 - Security Documents: List and details of security documents being discharged or released

4. Schedule 4 - Supporting Documents: Any additional documentation evidencing the basis for release or settlement

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 Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Primary legislation governing property law in England and Wales, particularly relevant for secured loans and charges over property

Consumer Credit Act 1974: Regulates consumer credit agreements and sets out requirements for termination and settlement of consumer loans

Financial Services and Markets Act 2000: Key legislation governing financial services and regulated financial institutions providing loans

Limitation Act 1980: Establishes statutory time limits for bringing claims relating to loan agreements

Contract Law Principles: Common law principles including consideration, intention to create legal relations, and capacity to contract

Doctrine of Release: Common law principles establishing requirements for valid release of contractual obligations

FCA Regulations: Financial Conduct Authority regulations applicable to regulated loan products and their release

Consumer Protection Regulations: Regulations protecting consumer rights in financial transactions including loan agreements

GDPR and Data Protection Act 2018: Legislation governing the handling and protection of personal data in financial transactions and documentation

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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