Document background
The Third Party Loan Agreement is a crucial financing document used in Malaysian business and personal lending transactions where additional security or guarantee is required beyond the borrower's direct obligations. This agreement is particularly relevant when the primary borrower's creditworthiness needs to be supplemented by third-party support, whether through additional collateral, guarantees, or other security arrangements. The document must comply with Malaysian banking regulations, including the Financial Services Act 2013 and, where applicable, the Islamic Financial Services Act 2013. It typically includes detailed provisions on loan terms, security arrangements, enforcement mechanisms, and the specific obligations of all parties. The agreement is commonly used in both corporate and individual lending scenarios and can be adapted for various financing purposes, from business expansion to property acquisition.
