Construction Loan Agreement Template for Singapore

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Key Requirements PROMPT example:

Construction Loan Agreement

"Need a Construction Loan Agreement for a commercial development project in Singapore with a loan value of SGD 50 million, where disbursement will be done in five phases starting March 2025, and we need specific provisions for green building certification requirements."

Document background
The Construction Loan Agreement is essential for property development and construction projects in Singapore where external financing is required. This agreement type is specifically designed to address the unique aspects of construction financing, including staged disbursements aligned with construction milestones, specific security requirements, and compliance with Singapore's strict building and banking regulations. The document typically includes detailed provisions for project oversight, cost monitoring, and construction quality assurance, making it particularly important for both lenders and developers in managing construction-related risks and ensuring project completion.
Suggested Sections

1. Parties: Identifies and defines the lender and borrower

2. Background: Context of the loan and construction project

3. Definitions: Key terms used throughout the agreement

4. Facility Amount and Purpose: Loan amount and specified use of funds

5. Conditions Precedent: Requirements to be met before loan disbursement

6. Disbursement Terms: Schedule and conditions for releasing funds

7. Interest and Fees: Interest rates, calculation methods, and applicable fees

8. Repayment Terms: Payment schedule and methods

9. Security: Collateral and security arrangements

10. Representations and Warranties: Statements of fact by borrower

Optional Sections

1. Insurance Requirements: Specific insurance coverage requirements for projects needing additional coverage beyond standard requirements

2. Environmental Compliance: Environmental protection requirements for projects with significant environmental impact

3. Green Building Requirements: Sustainable construction standards for projects pursuing green certification

Suggested Schedules

1. Construction Schedule: Detailed timeline of construction milestones

2. Disbursement Schedule: Breakdown of loan disbursement phases

3. Property Details: Legal description and details of construction site

4. Construction Plans: Approved architectural and engineering plans

5. Contractor Details: Information about main contractor and key subcontractors

6. Security Documents: List and copies of security instruments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Banking Act (Cap. 19): Primary legislation that regulates banking business and lending requirements in Singapore, including provisions on credit facilities and security requirements for construction loans

Building and Construction Authority Act: Governs construction activities and licensing in Singapore, particularly relevant for establishing construction milestones and requirements in the loan agreement

Moneylenders Act (Cap. 188): Regulates money lending activities in Singapore, applicable if the lender is not a licensed bank

Building Control Act: Regulates building works and construction standards, crucial for incorporating construction-related conditions in the loan agreement

MAS Notice 632: Specific regulatory notice on Building Construction Loans, including loan-to-value limits and other restrictions for construction financing

Building Control Regulations: Technical requirements for construction and compliance requirements that may affect loan disbursement schedules

Singapore Contract Law: Common law principles governing contract formation, rights and obligations of parties in Singapore

Singapore Property Law: Laws governing security interests, mortgages, and land title issues relevant to construction loans

Building Maintenance and Strata Management Act: Legislation relevant when construction involves strata properties, affecting certain loan conditions

Environmental Law: Environmental protection requirements that may affect construction conditions and loan agreement terms

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore covering banking practices and risk management requirements

BCA Guidelines: Building and Construction Authority guidelines specifying construction standards and project completion requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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