Unsecured Loan Note Template for Ireland

The Unsecured Loan Note is commonly used in Ireland for documenting lending arrangements where no specific collateral is provided as security. It serves as a formal evidence of debt and is particularly useful for both corporate financing and private lending arrangements. The document complies with Irish financial services regulations, including the Consumer Credit Act 1995 and Companies Act 2014 where applicable. It typically includes comprehensive terms covering the loan amount, interest calculations, repayment schedules, events of default, and borrower covenants. This type of document is especially relevant when parties wish to establish a formal lending arrangement with clear terms but either don't require or prefer not to involve specific security arrangements. The flexibility of an Unsecured Loan Note makes it suitable for various business contexts, from startup funding to corporate borrowing, while maintaining compliance with Irish regulatory requirements.

1. Parties: Identifies and defines the Lender and Borrower with full legal names and addresses

2. Background: Describes the context of the loan and the parties' intention to enter into the loan arrangement

3. Definitions and Interpretation: Defines key terms used throughout the document and sets out interpretation rules

4. The Loan: Specifies the principal amount, purpose, and conditions precedent to drawdown

5. Interest: Details the interest rate, calculation method, and payment dates

6. Repayment: Sets out the repayment schedule, method of payment, and prepayment provisions

7. Representations and Warranties: Contains standard representations and warranties from the Borrower

8. Covenants: Details the Borrower's ongoing obligations throughout the loan term

9. Events of Default: Lists circumstances that constitute default and the consequences thereof

10. Taxes and Withholdings: Addresses tax obligations and gross-up provisions

11. Notices: Specifies how formal communications between parties should be made

12. Assignment and Transfer: Sets out rules for transferring or assigning rights under the note

13. Governing Law and Jurisdiction: Specifies Irish law as governing law and jurisdiction for disputes

14. Execution: Signature blocks and execution formalities