About this document
This agreement is suitable where the borrower is an individual. The lender could be another individual, or a company.
The lender takes security against intangible assets such as company shares, debts, or intellectual property. We also include an optional provision for a third party guarantee, since a guarantor often provides additional incentive not to default.
The purpose of the loan is not important. It could be used to consolidate existing debt, to expand a business or for short term financing.
Examples of use are:
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where a company loans money to a director-shareholder against his or her shares
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for a personal loan between friends, where the borrower pledges a share portfolio as security
Either or both parties may be in the UK or abroad, and the agreement can be used for loans of any size.
Similar documents
If the borrower is a company, then this contract is more suitable. It contains additional provisions such as to ensure that the shareholders do not restructure the share capital company so as to make worthless the secured shareholding.
You can also read more about securing a loan appropriately.
Contents
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Structure of the loan
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Alternative draw down arrangements
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Provisions of information to lender to allow valuation
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Repayment and interest payment arrangements
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Method of payment
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Provision for default situations
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Borrower's warranties
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A round up of legal matters
Drawn outside the Consumer Credit Act 1974, this agreement is not suitable for companies in the business of lending or providing credit to consumers.
This document was written by a solicitor for Net Lawman. It complies with current English law.
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