Warehouse Loan Agreement Template for Singapore

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Key Requirements PROMPT example:

Warehouse Loan Agreement

"Need a Warehouse Loan Agreement for a Singapore-based electronics manufacturer borrowing SGD 5 million against inventory stored in Jurong, with quarterly interest payments and a 2-year term starting March 2025."

Document background
A Warehouse Loan Agreement is commonly used in trade finance and inventory financing scenarios where businesses require working capital against stored goods. The agreement establishes the legal framework for the loan facility, incorporating Singapore's robust commercial law principles and regulatory requirements. It details the security arrangement over the warehoused goods, monitoring mechanisms, and enforcement rights. This type of agreement is particularly relevant in Singapore's position as a major trading hub, providing businesses with access to financing while giving lenders security over tangible assets.
Suggested Sections

1. Parties: Identification of the lender and borrower, including registration details and addresses

2. Background: Context of the agreement, including purpose of the loan and nature of warehouse arrangements

3. Definitions: Key terms used throughout the agreement including 'Collateral', 'Warehouse', 'Security Interest', etc.

4. Loan Facility: Terms of the loan, including amount, interest rate, and repayment schedule

5. Security Arrangements: Details of the warehouse arrangement and security over stored goods

6. Representations and Warranties: Standard declarations by borrower regarding legal capacity, ownership of goods, etc.

7. Covenants: Ongoing obligations of the borrower including maintenance of collateral

8. Events of Default: Circumstances constituting default and consequences

9. Enforcement Rights: Lender's rights upon default including access to warehouse and disposal of goods

Optional Sections

1. Insurance: Requirements for insurance of stored goods - used when specific insurance requirements are needed beyond standard coverage

2. Third Party Rights: Rights of warehouse operator or other third parties - used when warehouse operator is not a party but has specific rights

3. Guarantees: Terms of any additional guarantees - used when personal or corporate guarantees are required

4. Security Trustee Provisions: Appointment and powers of security trustee - used in syndicated facilities or multiple lender arrangements

Suggested Schedules

1. Schedule 1 - Description of Goods: Detailed inventory of goods serving as collateral

2. Schedule 2 - Warehouse Details: Location and specifications of warehouse facilities

3. Schedule 3 - Form of Drawdown Notice: Standard form for requesting loan disbursements

4. Schedule 4 - Insurance Requirements: Specific insurance requirements and minimum coverage

5. Schedule 5 - Security Documents: List of additional security documents required

6. Appendix A - Operating Procedures: Procedures for deposit, withdrawal, and inspection of goods

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

Contract Law: Chapter 53A of Singapore Statutes - Fundamental legislation governing formation and enforcement of contracts

Securities and Futures Act: Chapter 289 - Regulates securities, futures and derivatives markets, including secured lending arrangements

Companies Act: Chapter 50 - Governs corporate entities' powers to enter into loan agreements and create security interests

Bankruptcy Act: Chapter 20 - Relevant for understanding creditor rights and enforcement in case of default

Banking Act: Chapter 19 - Regulates banking institutions and their lending activities in Singapore

MAS Guidelines: Monetary Authority of Singapore regulatory guidelines for financial institutions and lending practices

MAS Notice 643: Specific regulations regarding transactions with related parties in financial institutions

MAS Notice 612: Guidelines on credit risk management practices for financial institutions

Conveyancing and Law of Property Act: Chapter 61 - Governs real property transactions and related security interests

Registration of Deeds Act: Chapter 269 - Requirements for registration of security interests and other instruments

Bills of Sale Act: Chapter 24 - Regulates creation and registration of security interests in personal property

Warehouse Regulations: Singapore Customs regulations governing warehouse operations and storage of goods

Consumer Protection (Fair Trading) Act: Protects consumer interests in commercial transactions including lending

Unfair Contract Terms Act: Chapter 396 - Regulates unfair terms in contracts and protects against unreasonable contract provisions

Anti-Money Laundering Regulations: Requirements for preventing money laundering and terrorism financing in financial transactions

Personal Data Protection Act 2012: Governs collection, use, and disclosure of personal data in commercial transactions

Stamp Duties Act: Chapter 312 - Requirements for stamp duty payment on loan and security documents

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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