Document background
The Simple Loan Note Agreement is a fundamental financial instrument used in New Zealand to document lending arrangements between parties. This agreement is particularly suitable for business loans, private lending arrangements, and structured financial transactions where a straightforward but comprehensive loan documentation is required. The document complies with New Zealand's financial and commercial legislation, including the Contract and Commercial Law Act 2017 and Credit Contracts and Consumer Finance Act 2003. It typically includes provisions for loan amount, interest calculations, repayment terms, security arrangements (if any), and default scenarios. This agreement type is commonly used when parties need a more formal arrangement than a simple IOU but don't require the complexity of a full facility agreement.
