Loan Licence Agreement Template for Malaysia

The Loan Licence Agreement is a specialized legal instrument used in Malaysian business transactions where financing is provided in conjunction with the licensing of specific assets, technology, or intellectual property. This document type is particularly relevant when a lender provides funding while simultaneously granting the borrower rights to use certain proprietary assets or technology. The agreement must comply with Malaysian financial regulations, including the Financial Services Act 2013 and relevant licensing laws. It's commonly used in technology implementations, equipment financing, or software deployment scenarios where the borrower requires both funding and usage rights. The document typically includes comprehensive provisions covering loan terms, interest rates, repayment schedules, security arrangements, licensing conditions, usage restrictions, and termination rights, all structured to ensure enforceability under Malaysian law.

1. Parties: Identifies and defines the parties to the agreement - typically the Lender/Licensor and Borrower/Licensee

2. Background: Sets out the context and purpose of the agreement, including the intent to combine lending and licensing arrangements

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Loan Terms: Details of the loan including amount, interest rate, repayment terms, and payment schedule

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

6. Licence Terms and Conditions: Detailed conditions governing the use of the licensed item/property

7. Security and Collateral: Details of any security or collateral provided for the loan

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Covenants: Ongoing obligations of both parties during the term of the agreement

10. Default and Enforcement: Consequences of default and enforcement rights

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Confidentiality: Obligations regarding confidential information

13. General Provisions: Standard boilerplate clauses including notices, amendments, governing law, etc.