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Make an intra-group loan
🪙 On-demand facility agreement
Standard On Demand Loan Agreement (Intra Group)
Standard On Demand Loan Agreement (Intra Group)
Publisher one
Genie AIJurisdiction
England and WalesCost
Free to useRelevant sectors
Type of legal document
🪙 On-demand facility agreementBusiness activity
Make an intra-group loanThe Standard On Demand Loan Agreement (Intra Group) template, applicable under UK law, sets out the terms and conditions for on-demand loans within a conglomerate or group of companies. This legal document is designed to regulate the lending and borrowing arrangements between different entities within the same group.
The on-demand loan refers to a financial transaction where the lender, usually a parent or holding company, extends funds to a subsidiary or affiliated company on an as-needed basis. Unlike a term loan with fixed repayment schedules, on-demand loans are flexible, allowing the borrower to request funds as required, with the lender having the right to demand repayment at any time.
The purpose of this agreement is to establish the rights and obligations of both the lender and borrower. It outlines the loan amount, interest rates, repayment terms, and any collateral or security provided by the borrower. Additionally, the agreement may define the circumstances under which the lender can demand immediate repayment or terminate the loan.
This legal template complies with the legal requirements and standards of UK law, ensuring all provisions are enforceable in a court of law. It may be used by multinational corporations, conglomerates, or groups of companies operating in the United Kingdom to formalize and govern their intra-group lending arrangements.
It is important to note that this template serves as a starting point and should be customized to fit the specific needs and circumstances of the parties involved. Both parties should seek legal advice to ensure compliance with applicable laws and to protect their interests in the event of any potential disputes or disagreements.
The on-demand loan refers to a financial transaction where the lender, usually a parent or holding company, extends funds to a subsidiary or affiliated company on an as-needed basis. Unlike a term loan with fixed repayment schedules, on-demand loans are flexible, allowing the borrower to request funds as required, with the lender having the right to demand repayment at any time.
The purpose of this agreement is to establish the rights and obligations of both the lender and borrower. It outlines the loan amount, interest rates, repayment terms, and any collateral or security provided by the borrower. Additionally, the agreement may define the circumstances under which the lender can demand immediate repayment or terminate the loan.
This legal template complies with the legal requirements and standards of UK law, ensuring all provisions are enforceable in a court of law. It may be used by multinational corporations, conglomerates, or groups of companies operating in the United Kingdom to formalize and govern their intra-group lending arrangements.
It is important to note that this template serves as a starting point and should be customized to fit the specific needs and circumstances of the parties involved. Both parties should seek legal advice to ensure compliance with applicable laws and to protect their interests in the event of any potential disputes or disagreements.
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