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An Addendum Loan Agreement is utilized when parties need to modify an existing loan arrangement without creating an entirely new agreement. This document is particularly relevant in the Nigerian business environment where changing economic conditions, business circumstances, or regulatory requirements may necessitate adjustments to existing loan terms. It's commonly used to modify interest rates, extend repayment periods, adjust security arrangements, or accommodate debt restructuring. The document must adhere to Nigerian banking regulations and contract law, requiring proper execution, witnessing, and stamping to be legally valid. It's essential for both lenders and borrowers in managing their ongoing financial relationships and ensuring compliance with local legal requirements while maintaining the fundamental structure of the original loan agreement.
