Property Loan Note Template for Nigeria

The Property Loan Note is a crucial document in Nigerian financial transactions where real estate is used as security for lending. This document type is commonly used when a borrower seeks financing against property assets, whether for property acquisition, development, or other business purposes. The note must comply with Nigerian banking regulations, particularly the Central Bank of Nigeria guidelines, and property laws including the Land Use Act 1978. It typically includes comprehensive details about the loan facility, property security, repayment terms, and enforcement mechanisms. The Property Loan Note is particularly important in the Nigerian context due to specific local requirements for land ownership, registration, and security creation.

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the loan arrangement and brief description of the property being used as security

3. Definitions: Definitions of key terms used throughout the document

4. Loan Amount and Purpose: Specification of the loan amount, purpose, and any conditions precedent

5. Interest Rate and Calculations: Details of the interest rate, calculation method, and payment periods

6. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

7. Security Arrangements: Details of the property security, including registration requirements and restrictions

8. Borrower's Representations and Warranties: Borrower's confirmations regarding their capacity, property ownership, and other material facts

9. Borrower's Covenants: Ongoing obligations of the borrower regarding property maintenance, insurance, and loan compliance

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights and remedies in case of default, including property possession

12. Notices: Process for serving formal notices between parties

13. Governing Law and Jurisdiction: Confirmation of Nigerian law as governing law and jurisdiction for disputes