FREE UK Loan Agreement (Long Form)

LOAN AGREEMENT- LONG FORM

THIS AGREEMENT is made on this [Date] by and between:


[Name of the Company], a company incorporated under the laws of United Kingdom and having its registered office at [Address] (“Lender”).



AND



[Borrower], having his permanent residence at [Address], hereinafter referred as the Borrower.



1. Advance



2.1 The Borrower may at any time, on or after the date of this Agreement request the Lender in writing to make, and the Lender shall subject to the terms of this Agreement and at its discretion make any advance to the Borrower of £ [Amount] which shall be repayable on the Repayment Date. The Lender shall make payment of the Advance to the account of the Borrower at a bank, in accordance with the request of the Borrower.



2. Conditions Precedent to Advance



The Lender shall not be under any obligation to make the Advance to the Borrower under Clause 2.1 unless: -



3.1 This Agreement and the Transfer in Pledge have been signed and delivered by the Borrower.



3.2 No Event of Default or event, which with the giving of notice, lapse of time or fulfillment of any condition would likely to become an Event of Default, continues un-remedied.



3. Term



The Borrower shall repay the Advance in full on the Repayment Date. Notwithstanding anything to the contrary contained herein, the Lender shall have the right and power to accelerate repayment of the Advance upon giving notice to the Borrower without giving any reason for the same.



4. Interest



4.1 Interest shall accrue on the daily balance of the Advance from the date of drawdown until the advance is repaid in full at the rate of 18 (eighteen) per cent per annum for the Interest Period relating to the Advance.

4.2 Each Interest Period for the Advance is to be the period of six (6) months or such other period as may be agreed in writing between the Parties. The initial Interest Period for the Advance commences on the date of drawdown.



5. Interest on overdue amounts



5.1 The Borrower agrees to pay interest on any amount payable by it under this Agreement from the day when it becomes due for payment until the day it is actually paid. Interest is payable at:



6. Payment and Taxes



6.1 The Borrower agrees to make payment to the Lender under this Agreement not later than 10 a.m. local time at the place of payment on the due date in immediately available funds to the account of the Lender at the bank, which the Lender designates by notice to the Borrower.





7. Representations and Warranties



9.1 The Borrower represents and warrants that: -



9.1.1 he has power to enter into and observe his obligations under this Agreement and Transfer in Pledge; and



9.1.2 his obligations under this Agreement and the Transfer in Pledge are valid and binding and are enforceable against it in accordance with their terms except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights; and





8. Events of Default



11.1 An Event of Default occurs if: -



11.1.1 the Borrower does not pay on time any money payable under this Agreement in the manner required under it; or



11.1.2 a representation or warranty made or taken to be made by or on behalf of the Borrower in connection with this Agreement or the Transfer in Pledge is found or is notified by the Borrower to be incorrect or misleading in a material respect when made or taken to be made; or







15.5 This Agreement shall be governed by the laws of England and Wales.



15.6 Any dispute or difference arising out of or in connection with this Agreement shall be resolved by means of reference to arbitration by a sole arbitrator to be appointed by mutual consent of the Parties. The venue of the arbitration shall be in London and the procedure of arbitration shall be as prescribed in the Rules of the London Court of International Arbitration.







LENDER BORROWER



Date: Date: