Trust Loan Agreement Template for Singapore

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Key Requirements PROMPT example:

Trust Loan Agreement

"Need a Trust Loan Agreement under Singapore law for a SGD 5 million loan from our family trust to a property development company, with quarterly interest payments and full repayment by March 2025, secured against commercial property."

Document background
The Trust Loan Agreement serves as a crucial document for facilitating loans through trust structures in Singapore. It is commonly used when trustees need to provide financing to beneficiaries or third parties while maintaining proper trust governance. The agreement must comply with Singapore's robust regulatory framework, particularly the Trustees Act and related legislation. This document typically includes detailed provisions on loan terms, trust obligations, security arrangements, and regulatory compliance requirements. Trust Loan Agreements are particularly relevant in wealth management, family office arrangements, and structured financing transactions where trust structures are utilized for asset management and protection.
Suggested Sections

1. Parties: Identifies the lender (trustee), borrower, and any other relevant parties

2. Background: Explains the context of the trust loan arrangement and relationship between parties

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the loan amount and its intended use

5. Interest Rate and Calculations: Details the applicable interest rate and calculation method

6. Repayment Terms: Specifies repayment schedule, method, and conditions

7. Representations and Warranties: Standard declarations by parties regarding their capacity and authority

8. Events of Default: Lists circumstances constituting default and consequences

9. Governing Law and Jurisdiction: Specifies Singapore law as governing law and jurisdiction

Optional Sections

1. Security: Details of any collateral or security arrangements (include when loan is secured)

2. Guarantees: Terms of any guarantees provided by third parties (include when guarantees are involved)

3. Trust Terms: Specific trust arrangements and conditions (include for complex trust structures)

4. Assignment: Rights and restrictions regarding assignment of the loan (include when assignment rights are relevant)

Suggested Schedules

1. Repayment Schedule: Detailed schedule of repayment dates and amounts

2. Security Details: Details of any security or collateral provided

3. Trust Deed Extract: Relevant excerpts from the trust deed

4. Form of Notice: Standard forms for notices between parties

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

Trustees Act (Chapter 337): Primary legislation governing trustees' powers, duties, and responsibilities. Regulates trust administration and sets out investment powers of trustees.

Securities and Futures Act (Chapter 289): Regulatory framework for financial products and securities. Relevant if the loan involves any regulated financial products or securities.

Moneylenders Act (Chapter 188): Regulates moneylending activities in Singapore. Need to ensure compliance if applicable, though typically not applicable for legitimate trust arrangements.

Trust Companies Act (Chapter 336): Regulates trust companies in Singapore. Applicable if a licensed trust company is involved in the trust loan arrangement.

Contract Law (Common Law): Foundational principles ensuring validity of agreement, including requirements for offer, acceptance, consideration, intention, and contractual remedies.

Civil Law Act (Chapter 43): Contains provisions relating to contracts and interest rates applicable to loan agreements.

Stamp Duties Act (Chapter 312): Governs stamp duty requirements applicable to loan documents and agreements.

Personal Data Protection Act: Regulates the collection, use, and disclosure of personal data in the agreement and related documentation.

Anti-Money Laundering Regulations: Compliance requirements to prevent money laundering through trust loan arrangements.

Fiduciary Duties: Legal obligations of trustees to act in the best interest of beneficiaries, including duties of care, loyalty, and prudent investment.

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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